UKAR cuts £788 miillion from government debt

UK Asset Resolution, which owns Bradford & Bingley and Northern Rock has reduced the amount it owns the government by £788 million in the last six months.

It also paid £391 million that it owes through interest, fees and corporation tax, according to its six month results to 30 June 2012. However, it still owes £45.8 billion. Underlying profit before tax for the period was £481.4 million, down from £591.8 million year-on-year. Bradford & Bingley’s underlying profit before tax reduced to £66.3 million from £200.2 million in the first half of 2011, with Northern Rock recording profit of £415.1m, up from £391.6m year-on-year. UKAR chief executive Richard Banks said: “"We have made strong progress in the first half with further repayments to the Government. Much of our focus is on helping those of our customers who are in financial difficulty and it is pleasing to see a further significant reduction in arrears levels despite the continued economic uncertainty and pressure on consumers' finances." Also in the results, it said that mortgage accounts three or more months in arrears had reduced by 9 per cent since the start of 2012.