UK starts planning for 'serious economic risks' of Greek exit from euro

British chancellor George Osborne says government is taking 'all steps' to protect Britain amid fears that Greece is on verge of debt default

The British government is stepping up contingency planning to prepare for the "serious economic risks" posed by a Greek default and a possible exit from the euro, Downing Street has confirmed.

As David Cameron prepares to discuss the Greek crisis with the prime ministers of Italy and Luxembourg on Wednesday, No 10 confirmed the government was planning for the impact on businesses, banks, the financial sector and tourism. The chancellor said on Tuesday the UK government was taking "all steps" to protect Britain.