£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.

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£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 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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