Responding to today’s (17th November) announcement that Northern Rock will be sold to Virgin Money, Newcastle North MP Catherine McKinnell said:

“Whilst this is good news for jobs, it’s disappointing that the Government have decided not to go down the remutualisation route, as this would have been a clear way for Ministers to demonstrate that it’s not ‘business as usual’ for the banking sector. The loss of the Northern Rock name from the High Street is also a real blow, having been an iconic North East brand for almost 50 years.

“However, I welcome the news that Virgin Money have pledged to keep their headquarters in Newcastle, and that no compulsory redundancies or branch closures will take place in the coming years. As one of the city’s largest employers, it’s really important the bank’s future is fully secured and that staff now have some certainty about their future.

“Equally important is the commitment to extend support to the Northern Rock Foundation for a further year. These are all issues I have been lobbying the Chancellor on since becoming an MP, and I am pleased that he appears to have listened to my concerns and those of other North East MPs on this.”