Alistair Darling has unveiled his plans to implement the biggest shake-up of the Bank of England seen in a decade.

Citing the need to bring stability to the UK financial sector flowing the turbulence caused by the Northern Rock fiasco, the chancellor revealed that his changes are designed to give the relevant authorities the ability to intervene at an earlier stage should it become apparent that an institution was getting into trouble.

Speaking to members of the finance sector at Mansion House in London, Mr Darling stated that he plans to create a "financial stability committee", tasked with bringing "invaluable external expertise with City experience to bear on the Bank's decision-making".

Other changes set to be implemented include cutting the Bank's governing Court from its current 18 members to no more than 12, with the focus on City experience, while it will also be given a statutory role to oversee financial stability, Mansion House was told.

However, the moves are likely to be opposed by many MPs, who are wary of the chancellor's attempts to reform the finance sector, in particular his aim to give greater power to the Financial Services Authority.