You are here: Home - Uncategorized -

Rover collapse ‘could cost economy over £600m’

Written by:

The demise of carmaker Rover could cost the UK economy more than £600m, according to the Public Accounts Committee (PAC).

The figure includes a Government loan that will now have to be written off, a £500m ‘black hole’ in Rover’s company pension scheme and unemployment benefit to the 2,000 workers who are still out of work.

“You have to add in the closure of many related businesses – like parts suppliers and even cafes to feed the workers,” said industry expert David Boulden.

“The cumulative effect on the local and national economies has been extremely serious, with some estimates pointing at more than £600m.”

But there was praise for the way local agencies in the West Midlands have reacted. “The damage would have been even greater without the diversification of jobs encouraged by commercial bodies before the collapse,” said Edward Leigh, the PAC chairman.

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
BP’s profits boosted by higher oil prices

BP has unveiled a record $6.1bn (£3.3bn) second-quarter profit as continuing high oil prices more than compensated for a drop...