Political pressure grows to remutualise the Rock

An early day motion calling for Northern Rock to be remutualised has been signed by 101 MPs.

Tabled by Labour MP for Streathem Chuka Umunna, the motion argues that a thriving mutual sector adds to the diversity and strength of the UK’s financial system.

It calls on the Government to force UK Financial Investments, the body which looks after state investments in the financial sector, to look at the feasibility of remutualisation.

It says: “We call on the Government to give equal and due consideration to a mutual option for the future for Northern Rock by requiring UKFI to undertake a feasibility study and seek advice into remutualising Northern Rock.”

The EDM is signed by mostly Labour MPs but has also been backed by senior Liberal Democrat MP Menzies Campbell, Green Party Leader Caroline Lucas, as well as several Conservative and minority party MPs.

Northern Rock was nationalised in February 2008 after the first run on a British bank in a century and two failed private bids were rejected by the Labour Government. In March, it was reported that Coventry Building Society was to make a bid for Northern Rock.