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Gordon Brown under pressure regarding MG Rover

The UK government plans to blame the infamous Phoenix Four with regards to the collapse of MG Rover have tonight rebounded spectacularly. The report into the collapse, which was commissioned by the Department of Trade and Industry, has been ridiculed as a whitewash as it fails to cover the subject of subsidies from the UK government in any detail.

It is well documented that the UK government used taxpayer's money of £6.5 million to cover the wage bill for MG Rover around the time of the 2005 UK general election. Under the guise that it was supporting the company while takeover talks continued with Shanghai Automotive Industry Corporation, the fact that the plug was pulled on the company just after the election is damning for the UK government. While the authorities deny any plan to support the company from a political point of view, there is no doubt that many people are sceptical.

The fact that Gordon Brown was then Chancellor of the Exchequer and Tony Blair was the Prime Minister will ensure that Gordon Brown is in the news for all of the wrong things over the next few days. Even though there is no way to prove that the UK government used taxpayer's funds for political purposes, even the report, which commented upon the subsidy very very briefly, questioned whether it was a sensible move.

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