NORTHERN Rock workers will take centre stage in shaping a new force in British banking, according to Virgin Money’s boss.

Chief executive Jayne-Anne Gadhia said staff had a “crucial” role to play as she signalled a campaign to win business from existing high street rivals after offering an initial £747m to buy Northern Rock from the Government.

Former Rock boss Gary Hoffman – whose new firm lost out on buying the Rock – yesterday said that the combined new business would not be able to compete with the big players in the banking sector.

But Mrs Gadhia said the expertise Virgin was gaining from the Rock could see it taking on the established players.

She also highlighted the “great respect” for the Rock’s history and community focus in a letter to Newcastle Central MP Chi Onwurah, whose constituency is home to the bank’s headquarters.

Her comments came as Virgin Money said its operations director will be based in Newcastle, which will be the company’s “operational” base.

Northern Rock currently employs 2,100 people compared to around 500 Virgin Money staff across its business

Mrs Gadhia will be based in Edinburgh, where she lives and the company has offices. But she will spread her time in Newcastle and Edinburgh as well as London and Norwich – which is the registered office for the business. She is expected to spend two to three days a week in Newcastle.

In her letter to Ms Onwurah, Mrs Gadhia said the deal was expected to be completed by the end of the year and that Virgin Money would be working closely with Northern Rock’s management to ensure a “smooth transition”.

She said: “Now that the formal bid process has concluded, I wanted to get in touch to let you know that I would be keen to meet you, following completion, to discuss our future plans and get a better understanding of some of the issues on your agenda.