Britain ordered all Libyan diplomats late last night to leave the country and said it was officially recognising Libya's main opposition group as the legitimate government.
Foreign Secretary William Hague said the UK was unfreezing $150 million worth of Libyan oil assets to help the National Transitional Council, which itnow regards as the "sole governmental authority".
"We will deal with the National Transitional Council on the same basis as other governments around the world," he told a press conference.
Earlier in the night, the Libyan charge d'affaires was summoned and told that all eight remaining diplomatic staff and their dependants had to get out of Britain within three days.
The ambassador, Omar Jelban, was kicked out in May.
Hague told journalists the council had shown its commitment to a "more open and democratic Libya ... in stark contrast to [Muammar] Gaddafi, whose brutality against the Libyan people has stripped him of all legitimacy".
"The UK is committed to supporting the Libyan people. We are a strong and true friend ... The Libyan people can be assured that we will remain on their side for as long as it takes."
The diplomatic moves implement a decision made at a July 15 meeting in Istanbul during which the US, Britain and 30 other nations said they would recognise the council as the legitimate government.
A popular uprising seeking to oust Gaddafi broke out in February.
