NAO to investigate Northern Rock sale

The controversial sale of state-owned bank Northern Rock will be investigated by the public spending watchdog.

By The Newsroom

Published 19th Dec 2011, 04:30 BST

Amyas Morse, the head of the National Audit Office (NAO), has agreed to examine the deal to sell the bank to Sir Richard Branson’s Virgin Money for £747 million.

Labour has questioned the timing and value for money of the agreement, which leaves taxpayers facing a potential £400m-plus loss.

Shadow financial secretary Chris Leslie called for the sell-off to be delayed so that it could be assessed by the NAO.