Restrictions may hit Northern Rock jobs

BRITISH government plans to impose restrictions on the successful bidder for Northern Rock could lead to job cuts at the crisis-hit bank, it was reported yesterday.

The treasury is understood to have circulated a set of guidance notes to interested parties, calling for the government to be given a share in any financial recovery at the group, the Sunday Times said.

It is thought that the implication of the guidance notes is that Northern Rock’s cost base would have to be scaled down rapidly, leading to job losses among its 6,500 workforce.