Taxpayers in line for £11bn profit from Northern Rock

The nationalisation and resale of Northern Rock will rake in a profit of up to £11bn for UK taxpayers, it was announced today.

UKFI, the body set up to control the government's stake in bailed out financial institutions, said in a report taxpayers are set to receive a net profit of up to £11bn from the nationalisation and consequent sale of Northern Rock to Virgin Money. However, taxpayers may have to wait 15 years to receive the profits. "This cash is expected to be returned over a period of around 10 to 15 years from 2012 as Northern Rock Asset Management Plc is run down and the remaining government loan is repaid," said UKFI. The £11bn profit calculation is based on subtracting the amount in cash taxpay...