To ask the Chancellor of the Exchequer what the Government’s estimate is of the cost to the public purse of the nationalisation of Bradford and Bingley. (226751)

[holding answer 13 October 2008]: The Government’s objectives in taking Bradford and Bingley into public ownership were to protect depositors and maintain financial stability.

Payments to protect depositors were largely funded by the Financial Services Compensation Scheme (FSCS), with taxpayers providing £4 billion to cover deposits over £35,000. The Government aim to recoup this payment from the proceeds of the wind-down and realisation of the assets of the remaining business of Bradford and Bingley in public ownership.