Northern Rock is being sold to Virgin Money for £747m, the government has announced.

The bank was nationalised in 2008 following its near collapse at the onset of the global credit crunch.

The government subsequently split the bank into two, Northern Rock plc, and Northern Rock (Asset Management), into which was placed its bad debt.

BBC business editor Robert Peston said taxpayers had injected £1.4bn into Northern Rock plc.

He added that in addition to the immediate £747m the government will get back following the completion of the sale, there is the potential for the Treasury to receive a further £280m over the next few years.

"So on paper, taxpayers end up with a loss of somewhere between £400m and £650m," said our business editor.

Gideon Osborne is selling off Northern Rock to Richard Branson at a knock down price, a loss of up to £700 million to the taxpayer. Nice one if you can get it. Shame for the rest of us. "We're all in this together."

Tories enriching private companies at the expense of the public purse? No, I won't believe it!