Northern Rock poised to lead UK out of recession

Feb 25 2009 by William Green, The Journal

NORTHERN Rock could soon get approval from Brussels to play a critical role in leading Britain out of recession, the Chancellor signalled last night.

Alistair Darling said the European Commission was “sympathetic” towards the Rock making a dramatic return to the mortgage market with around £14bn being made available over the next two years to boost the faltering economy.

He expressed hope that the Commission, which vets state aid for European firms, would soon approve the plans – not least because they provided the bank with a “stronger future”.

In an exclusive interview, the Chancellor also paid tribute to The Journal’s campaign supporting Northern Rock and its staff that helped secure the nationalised bank. And he declared that the region would get through a “very difficult year” of recession thanks to its renewed sense of confidence, skills and diversified economy.

The Government would continue to do everything it could to help businesses – such as Nissan and the region’s car industry – and people through the downturn, said the Chancellor.

Speaking about Northern Rock’s role in reviving the economy, Mr Darling said: “I think it will be very important. This is one of a number of measures that we are taking. But my priority last year was to stabilise the position with Northern Rock and rebuild it so it could continue to play a part as a bank as well as, of course, as a major employer.”