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Labour manifesto: Northern Rock to be remutualised

Labour today revealed in its manifesto that it intends to remutualise Northern Rock if it is still in power after the general election.

Labour says it will look to find a “mutual solution” for the nationalised bank, which was split into a ‘good’ bank and ‘bad’ bank earlier this year, to increase competition in the building society sector.

The manifesto also says Labour will break up the banks in which the Government has a controlling stake.

The manifesto says: “As one option for the disposal of Northern Rock, we will encourage a mutual solution, while ensuring that the sale generates maximum value for money for the taxpayer.”

The former building society had to be rescued by the taxpayer after collapsing in September 2007.

Last month it was announced that the so-called “bad bank”, Northern Rock Asset Management, could merge with another state-backed bank, Bradford & Bingley.

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