Spending watchdog says state-owned bank exposed taxpayers to ‘unacceptable risk’ as cost spiral to £3bn

An attempt to modernise the state-owned savings bank NS&I has been a “full-spectrum disaster”, parliament’s spending watchdog has concluded in a damning report.

NS&I (National Savings & Investments), which runs a popular monthly cash-prize draw for premium bond holders, has been criticised by a committee of MPs for exposing the taxpayer to “unacceptable risk” owing to the spiralling costs of its £3bn modernisation programme.