Alastair Darling dreams of a new life for Northern Rock

Oct 23 2009 by William Green, The Journal

Question marks over Northern Rock Foundation

FUTURE public funding for the Northern Rock Foundation is not guaranteed, the Chancellor says.

Alistair Darling won praise after agreeing that the charity would receive £15m annually for three years when Northern Rock was nationalised in 2008.

The foundation – which provides grants across the North East and Cumbria - was created when Northern Rock demutualised in 1997. Up to December 2007, the bank handed 5% of its annual pre-tax profits to the foundation.

Asked if the Government was ready to provide more support, Mr Darling said: “If someone comes along and says we want to buy it [the Northern Rock bank], then the Foundation is one of the things we would want to look at.

“Ideally the whole point of a foundation is that you are getting money from the private sector going into the voluntary sector, rather than direct Government grant.”