The sale of the former state-owned Northern Rock to Virgin Money is to be investigated by the National Audit Office, following criticism from Labour about the terms of the sale. The NAO is to investigate value for money for the taxpayer after it was revealed that taxpayers may have lost hundreds of millions due to an early sale.

Labour Co-operative MP Chris Leslie said that there was the possibility under the terms of the deal for asset stripping:

"The investigation by the National Audit Office confirms that questions still hang over George Osborne's deal.

"At present there is the possibility that those buying Northern Rock could asset strip so much from the firm that they get back virtually every penny they invest within a matter of months."

The Co-operative Party has campaigned for Northern Rock to be returned to the mutual sector as part of our the Feeling's Mutual campaign for fairer financial services.

You can join our campaign here.