LONDON, Oct 9, 2008 (AFP) - Britain's 'eye-wateringly expensive' rescue package for its ailing banks was welcomed in the press Thursday as a good move to shore up the system, even as they lamented the huge risks that came with it.

Newspapers generally judged that Prime Minister Gordon Brown's three-stage plan to fund banks in return for shares, offer short-term loans and guarantee inter-bank lending was better than the 700-billion-dollar US bailout plan.

But many noted the huge burden it would put on public purse, as the government borrows to fund the package worth hundreds of billions of pounds, and predicted taxes would have to go up and spending be cut if it failed.

'For the very first time in this saga, the government appears to be on the front foot,' said the right-wing Daily Telegraph.

While the part-nationalisation implied by the share buy proposal was hard to swallow, it said 'desperate times require desperate measures. When a blaze in your home is extinguished, it is churlish to complain about water damage'.

The left-wing Guardian was more pessimistic, saying that while Brown had 'done the right thing' with the rescue package, if it failed to work the world would be 'staring into the abyss of a possible collapse of the banking system'.

The right of centre The Times described the plan as an 'intelligent and measured response to the financial crisis', that 'may not end the gloom but it may end the panic', noting its failure to stop markets falling Wednesday.

Several newspapers calculated the cost to the individual British taxpayer should the banks being propped up by the government fail.

According to the right-wing tabloid Daily Mail, taxpayers could lose 16,000 pounds (28,000 dollars, 20,000 euros) each if Brown's 'gamble' did not pay off.

The Financial Times was among many that questioned whether Britain could afford the bailout, which some reports said could raise the country's public debt to half of GDP. The business daily decided that it probably could.

'National debt is relatively low and the UK can borrow more. The price will, in all likelihood, be eclipsed by the cost of any significant downturn,' the FT said.

As to the success of the plan, coupled with the coordinated global cuts in interest rates Wednesday, most commentators hedged their bets.

'Given the fragile nature of the markets, and the recent speed of events, nobody can be sure this will be the result of today's moves,' said David Smith, economics editor of The Sunday Times.

'But things look better than they did 24 hours ago. Whether they'll look as good in 24 or 48 hours remains to be seen.'