Robert Peston: "The decision will be a blow to the bank's shareholders - who will receive next-to-nothing in the short term for their shares. Emergency legislation to nationalise the bank will be introduced into the Commons tomorrow afternoon."
Alistair Darling: "It is better for the Government to hold on to Northern Rock for a temporary period and as and when market conditions improve the value of Northern Rock will grow and therefore the taxpayer will gain."
George Osborne: "After months of dither and delay we have ended up with this catastrophic decision... We now have the situation where the government will be making decisions on whether or not to foreclose on people's loans in a falling housing market."
Mr Osborne confirmed that conservatives will oppose nationalisation.
5.55pm statement from George Osborne: "This is the day when Labour's reputation for economic competence died. Gordon Brown has dithered his way to the disaster of nationalisation. Now the taxpayer will bear the full risk of lending £100 billion of mortgages in an uncertain housing market. We will not back nationalisation. We will not help Gordon Brown take this country back to the 1970s.”