Saturday 19 November 2011

Value for money

Northern Rock plc is being sold to Virgin Money for £747m, plus a potential future £280m.  Whereas it cost the taxpayer £1,400m to get it into its current state.  George Osborne says that this "represents value for money".

I don't know whether or not this is a good trade for the British Government.  But "value for money" means you spent money on something and got something at least as valuable to you in return.  I think that £1,027m or less is not as valuable as £1,400m.

Let's hope that it's Osborne's English rather than his arithmetic that's failed him.

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