Northern Rock to be nationalised

THE beleaguered bank Northern Rock will be nationalised, the Treasury announced today.

THE beleaguered bank Northern Rock will be nationalised, the Treasury announced today.

In a statement, Chancellor Alistair Darling said "under the current market conditions" neither of the two private proposals delivered "sufficient value for money to the taxpayer'.

Despite late revision to bids by Virgin Group and the Rock's own management team, private sector solutions did not meet the Government's tests, Mr Darling said today.

Ron Sandler, the former chief executive at Lloyd's of London, will now run the business and emergency legislation will now be rushed through Parliament.

A full statement will be made to the House of Commons tomorrow.