CHARITY bosses have called on the Government to share profits from its Northern Rock sale to help regional organisations.

The Voluntary Organisations’ Network North-East (VONNE) says good causes are losing out and has urged Chancellor George Osborne and Minister for Civil Society Rob Wilson to return £450m to charities.

The call comes after Virgin Money, which took over parts of the collapsed Northern Rock, announced it will return £50m to the taxpayer in a stock market flotation.

Lender Virgin, headed by Sir Richard Branson, expects shares to start trading this month, with the firm valued at up to £2bn.

However, The Northern Rock Foundation, the former bank’s charitable arm inherited by Virgin, looks likely to close.

An appeal by bosses, who donate £1m a year via the foundation, for another £3m from local companies to meet its annual £4m total, has struggled, and last month it became clear attracting additional cash was not possible.

Jo Curry, VONNE chief executive, said: “The Northern Rock Foundation owned 15 per cent of the shares in Northern Rock bank and received five per cent of pre-tax profits.

“In January 2012, Virgin Money bought the Northern Rock business and branch network, the so-called good bank for £747m, and with subsequent payments, this has risen to £1.02bn.

“Virgin money made profits of £60m in the first half of this year and are set to raise £150m from its flotation.

“Meanwhile Northern Rock Asset Management, the so called bad bank, which was hived off under the UK Asset Resolution Scheme, made more than £1bn in the 15 months prior to March 2014 and £876m in 2012.

“Experts say if you add the money raised by the Treasury from the sale to Virgin, the Government has made more than £3bn from the business in the last three years.

“If the Treasury were to make a gift to the foundation of just one per cent of the money raised through the sale of the business, this would create a £30m investment in charities, providing a much-needed lifeline.”

Virgin said its flotation, which will see with every one of its 1,700 staff in Newcastle awarded £1,000 worth of shares, was proof it had built a strong business.

Jayne-Anne Gadhia, Virgin Money’s chief executive, said: “Over the last three years we have transformed our business, and the decision to take the business public marks just how far we have come.

“We look forward to being a listed company and remain committed to delivering positive outcomes for all of our stakeholders.”

However, the move was criticised by Kevan Jones, Labour MP for North Durham, who called it a disgrace and said it proved the Rock was sold on the cheap.

He previously told The Northern Echo: “The Rock went on the cheap and we still have the poisoned chalice of the bad debt.

“This flotation shows that the age of greed has not gone away.

“The idea that Virgin Money can only give a paltry £1m to charity and allow the Northern Rock Foundation to close when they stand to make multi-millions of pounds is a disgrace.

“I would urge them to use of some of that to fund charities in the region.”