A MAJOR programme to sell assets rescued from the collapsed Bradford & Bingley building society during the financial crisis is under way, Chancellor Philip Hammond has confirmed.
UK Asset Resolution (UKAR), which controls state-owned banking assets, is looking to recoup £15.65 billion by the end of March 2018 via sales of B&B mortgage assets it holds.
The sale proposal to ensure the debt from the B&B bailout is repaid was announced by former chancellor George Osborne during his 2016 Budget.
Speaking in the Commons, Tory former minister Sir Desmond Swayne asked: “What are you planning to do with Bradford & Bingley’s assets?”
Mr Hammond replied: “Following the announcement at Budget 2016, UKAR has launched a programme of sales of Bradford & Bingley mortgage assets that it holds.
“This will be designed to raise sufficient proceeds to repay the £15.65 billion debt to the financial services compensation scheme, and in turn the corresponding loan from the Treasury.
“It’s expected, subject to market conditions and ensuring value for money, that the programme of sales will have been concluded in full by the end of 2017/18.”
In a statement, Mr Hammond added the decision was part of the plan to “recover all of the cash” British taxpayers injected into the banking sector during the financial crisis.
He went on: “This is one of my top priorities as Chancellor and that is why I approved UKAR to begin this process.
“I am determined to do everything I can to ensure that taxpayers get their money back.”