Co-operative Party General Secretary, Michael Stephenson, has denounced the Coalition Government's decision not to re-mutualise Northern Rock. Business Secretary, Vince Cable, revealed to the Newcastle Journal that, despite both widespread public enthusiasm and his own party's manifesto pledge, the initiative is to be scrapped.

Michael Stevenson said, "The ConDem Coalition has failed its first big test on co-operatives after less than 3 months. By reneging on their commitment to re-mutualise Northern Rock, Vince Cable has shown that their devotion to a new approach to the economy is just a sham.

"In contrast, Labour had committed itself to re-mutualising Northern Rock in its 2010 General Election Manifesto. Despite the Tory/Lib Dem U-turn, the Co-operative Party will continue its 'Feeling's Mutual' campaign because, unlike those parties, we believe in having a strong mutual sector in our economy."

The Liberal Democrats pledged to return the bank to mutual status during this year's election campaign. Vince Cable stated that he saw no reason why re-mutualisation wouldn't be possible. However, the government's decision to abandon the idea, casts doubt over the alleged Lib Dem commitment to co-operative values.