SCENARIOS - How can Britain combat looming recession?

By David Milliken

LONDON (Reuters) - The Bank of England has cut interest rates to their lowest level since the early 1950s, but analysts warn looser monetary policy alone may not be enough to tackle the biggest threat to the British economy -- the failure of banks to lend.

Following is an analysis of different scenarios to limit the impact of the credit crunch on the economy, which up to now has been heavily reliant on financial services and consumer spending.