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Labour: Osborne failed to mention Northern Rock payout in Autumn Statement

George Osborne’s smoke and mirrors in last week’s Autumn Statement continue to be exposed.

Now the Treasury has admitted that public sector net borrowing will be £270 million higher this year as a result of mistakes at Northern Rock.

But this figure was not revealed to parliament last week or in the official forecasts, even though the Treasury has admitted it knew about this problem in October.

It’s time George Osborne started being honest with people.

No amount of trickiness with the figures can disguise the fact that his failure to deliver jobs and growth means he is borrowing billions more than he planned.

– Shadow Treasury Minister Chris Leslie MP

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Northern Rock £270m payment 'cauterises' problem

by - Former Business Editor

Just been speaking to the boss of UKAR (UK Asset Resolution Limited), including Northern Rock - says £270 million payment "cauterises" problem.

Fault was in Northern Rock's system - but not noticed until February last year during standard quality check.

He told me no one who might have made the error is still working there.

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Northern Rock: 152,000 customers to receive compensation

by - Former Business Editor

Some 152,000 customers will get a total of £270 million compensation after mistakes by remnants of Northern Rock.

Northern Rock Asset Management, the publicly owned bit, made mistakes on loan documents between 2008 and now, so customers will get interest back.

If you had a loan with them you will be contacted in coming days to see if you will get compensation. It's a major embarrassment.

Virgin Money retires Northern Rock brand

by - Consumer Editor
Northern Rock's Liverpool branch Credit: Peter Byrne/PA Wire

The banking chain Northern Rock finally died today. Virgin Money, which bought the bank last November in a deal worth £747 million, has decided to terminate the brand.

A spokesman for Virgin Money said: “We have been working hard to integrate the Virgin Money and Northern Rock businesses this year.

"All of the branches have been transformed into Virgin Money Stores [and] the company has been renamed as Virgin Money plc."

Northern Rock: Taxpayers could lose £2bn

A sign is seen above a Northern Rock bank branch
A sign is seen above a Northern Rock bank branch Credit: Reuters

The taxpayer may lose around £2bn after the assets of collapsed bank Northern Rock are wound down, The National Audit Office has said.

The public spending watchdog also said taxpayers lost approximately £480m when Northern Rock PLC was sold in 2011.

The early sale of Northern Rock to Virgin Money was the "best way" to protect the taxpayer from greater losses, the report from the spending watchdog said. Northern Rock was saved in 2008 at the beginning of the financial crisis.

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