Northern Rock

Debate between Stephen Mosley and Mark Hoban

Monday 21st November 2011 Commons Chamber

[Mr Hoban]

We were dealt a hand by the previous Government. We inherited their ownership of Northern Rock. We inherited their holdings in Lloyds and RBS. Our judgment was that this was the right time to sell the business. The deadline imposed upon us by the European Commission acted as a spur to this. Looking at the prospects for Northern Rock under state control and comparing them to the prospects for Northern Rock under Virgin Money’s control, most sensible people would say that it was better that Northern Rock was owned by Virgin Money than by the state.

[Stephen Mosley (City of Chester) (Con)]

The employees of Northern Rock were cheering last week, but is this not also a vote of confidence by Virgin Money in the economy of the north-east and in the Government’s handling of the British economy as a whole?

[Mr Hoban]

That is right. We have a significant new entrant in the financial services market that is prepared to buy Northern Rock, to invest in the future of the operations in Gosforth and to provide job security there. It is a vote of confidence. It demonstrates that there are people out there who want to be part of our financial services market and who want to offer a good deal to consumers.

Oral Answers to Questions

Debate between Stephen Mosley and Mark Hoban

Tuesday 16th November 2010 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

11. What steps he has taken to encourage saving since the June 2010 Budget; and if he will make a statement.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government want to build a savings culture based on the principles of freedom, fairness and responsibility, and we are committed to creating conditions for higher saving. We have already announced a number of measures, including the annual financial health check and an end to the effective requirement to purchase an annuity with tax relief pension savings at the age of 75. We will also increase the amount that can be paid into ISAs each year in line with inflation from April 2011.

[Stephen Mosley]

Recent research from Which? has highlighted the fact that savers are missing out on £12 billion a year by keeping their money in accounts that pay extremely low rates of interest. Would my hon. Friend consider encouraging banks to print the interest rate on bank statements in the same way that credit card companies have to print the rate that they charge on their statements, in order to help savers to identify whether they are getting a good deal from their bank account?

[Mr Hoban]

My hon. Friend makes an important point. We need to ensure that savers have the information that they need to enable them to shop around and find the best possible deal. ISA providers have already agreed to disclose interest rates on their statements, and the Financial Services Authority is consulting on extending that duty to other savings accounts.