Stephen Hester, chief executive of British Land and former colleague of Northern Rock suitor Luqman Arnold, has been appointed deputy chairman of the stricken UK lender once it has been nationalised, after the Government abandoned talks with potential buyers at the weekend.

UK Chancellor of the Exchequer Alistair Darling, speaking alongside Prime Minister Gordon Brown in a press conference this morning explaining yesterday's decision to take the Rock into temporary public sector ownership, revealed Hester will take on the non-executive role once legislation is passed to nationalise the Rock.