Northern Rock - the most expensive job creation scheme in history

February 19, 2008 9:15 AM

Northern Rock's assets should be run down gradually, maximising value to taxpayers and minimising the scale of the potential loss. That much is clear. In this scenario, jobs at Northern Rock will have to be shed.

The Government has instead decided to try to keep Northern Rock going as a profitable business - never mind that it is a company with a busted brand, that would indeed be bust were it not for the £110 billion taxpayer guarantee.

There are 6,000 jobs at Northern Rock. The taxpayer liability per job is therefore a staggering £18.3 million. Should we really be risking so much for so few?Northern Rock's assets should be run down gradually, maximising value to taxpayers and minimising the scale of the potential loss. That much is clear. In this scenario, jobs at Northern Rock will have to be shed.

The Government has instead decided to try to keep Northern Rock going as a profitable business - never mind that it is a company with a busted brand, that would indeed be bust were it not for the £110 billion taxpayer guarantee.

There are 6,000 jobs at Northern Rock. The taxpayer liability per job is therefore a staggering £18.3 million. Should we really be risking so much for so few?

Latest Blogs:

TaxPayers' Alliance Icon

We're hiring a Campaign Manager - Digital

11:37 AM 16, Jan 2017 The TaxPayers' Alliance

TaxPayers' Alliance Icon

Increases in precepts are not the answer

3:30 PM 13, Jan 2017 James Price

TaxPayers' Alliance Icon

We must all stand up for a free press

10:39 AM 06, Jan 2017 Dia Chakravarty

TaxPayers' Alliance Icon

Want to be our new Policy Analyst?

12:52 PM 05, Jan 2017 The TaxPayers' Alliance

TaxPayers' Alliance Icon

Are rail fares too high?

3:38 PM 03, Jan 2017 Alex Wild