Northern Rock

I am pleased today to announce that the Government has today sold its holding of Tier 1 Notes issued by Virgin Money.

Tier 1 notes are capital instruments and were used by Virgin Money, along with cash payments, to pay for Northern Rock plc. We will receive £154.5 million cash for the notes, which were issued to HM Treasury in January 2012 at a par value of £150 million as part of the sale of Northern Rock plc.

This represents good value for the taxpayer and the money will be used to reduce the national debt.

This is another step in the government’s long term economic plan to deliver a more secure and resilient economy. It is another step in repairing the banks, in reducing our national debt and in getting the taxpayer’s money back.