MG Rover collapse 'cost taxpayer £270m'
25 July 2006

A report issued today by the Public Accounts Committee says that the collapse of MG Rover cost the UK tax payer around £270million.

The report goes on to say that the cost to the private sector and former MG Rover employees is likely to be around £600million, due to an estimated pension deficit of £500million, and £109million owed t UK-based creditors.

The report analyses the response to MG Rover’s downfall from both the Department for Trade and Industry (DTI) and local agencies in the West Midlands. It criticises what it calls “serious gaps in the Department's detailed planning,” but praises its success at arranging “immediate support for former employees following the collapse.”

Local agencies in the Midlands come in for further praise, the report stating that they “did well to respond quickly and effectively in the immediate aftermath of the Company collapse… They showed how local agencies can respond effectively to an impending crisis by drawing up plans well in advance.”

The report says over 4300 people who lost their jobs have now found work, but that around 2000 people, who are ex-employees of both MGR and its suppliers, are still out of work. The DTI is also investigating the former directors of Phoenix Venture Holdings, who received £40m between 2000 and 2005.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Dallara Stradale
    The Stradale is the first road-legel car from Italian motorsport constructor Dallara
    First Drive
    16 March 2018
    The motorsport constructor's first road car is inspired by Lotus minimalism. Does it thrill on road and track?
  • Hyundai i30 N
    Standard spec is good so paint colour is our car’s only option
    First Drive
    16 March 2018
    What’s Hyundai’s first hot hatch and N-brand debutant really like? Let’s find out
  • Porsche Boxster GTS
    This is the new GTS version of the Porsche Boxster
    First Drive
    15 March 2018
    The 718-generation Boxster is our favourite roadster of the moment – so is this new GTS variant worth the extra outlay?
  • BMW 5 Series
    First Drive
    15 March 2018
    The BMW 5 Series is top of the mid-exec pack, but is there still room for a diesel saloon in everyday family life?
  • Audi A7 front
    First Drive
    14 March 2018
    The new Audi A7 Sportback looks the part, but how does the new Mercedes-Benz CLS rival cope on UK roads? We find out