£2 billion bill for Northern Rock Rescue

The handling of one of the key moments of the financial crisis, the collapse of Tyneside-based Northern Rock, was announced today to have created a tax bill of £2billion left to pay by taxpayers around the country.

Latest ITV News reports

£2billion tax bill for saving Newcastle bank

The cost of saving Northern Rock could cost the tax payer £2billion, according to a report from the Commons Public Accounts Committee.

The Newcastle-based bank got into difficulties in 2007 when it became the first bank in 150 years to suffer a run during the then financial crisis.

The bank, which had its headquarters in the North East, collapsed in 2007
The bank, which had its headquarters in the North East, collapsed in 2007 Credit: ITV

Margaret Hodge, the committee's chair, has said the then Labour government took too long before deciding to nationalise the bank in February 2008.

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