The UK Treasury has played down the significance of a mid-January deadline for its adviser Goldman Sachs to report back on funding plans for Northern Rock, and remains hopeful of finding a financing solution "within weeks".

A source at the Treasury played down the fact that the deadline, set when the government body appointed Goldman last month, has passed, saying today that the US bank was hired to use its expertise and contacts in exploring potential funding arrangements for the stricken UK lender.