Shareholders seeking compensation after the break up of Bradford & Bingley bank have claimed their first success after the Government confirmed it would appoint an independent valuer to decide how much the business is worth.

But David Blundell, chairman of the Bradford & Bingley Shareholders’ Action Group, says it could be a long time before anyone receives any cash.

The group was launched to represent one million B&B shareholders after the Government decided at the end of September to take the ailing bank’s £50 billion mortgage book under public ownership and sell its savings business and branches to Spanish banking group Santander..

Mr Blundell welcomed the publication of a Government compensation order for Bradford & Bingley and the fact that the outcome would not depend on the result of a judicial review of the Northern Rock nationalisation.

He said: “We can possibly count this as the first success of our campaign because it would appear that the Government is taking a more reasonable stance in this case.

“However, this does not mean that this campaign no longer has a major task to perform.

“The valuation task is not going to be a straightforward or easy matter for whoever is appointed.

“There are likely to be a wide range of possible estimates and any attempt to use comparable bank valuations as a benchmark, or the stock market price that applied just before nationalisation, is also likely to result in considerable argument.”

Mr Blundell said the full extent of B&B’s financial circumstances on the nationalisation date had not been revealed, nor what prompted the Government to take over the bank.

He said: “Clearly, we may still have a considerable fight going forward to ensure fair compensation is paid.”

So far around 2,000 B&B shareholders have pledged their support to the campaign which is building up a fighting fund to pay for legal advice.

Mr Blundell stressed the committee were all volunteers and were not drawing any expenses. He can be contacted on 0113 2813941.

Shipley MP Philip Davies, in whose constituency B&B is based, has received a Government assurance that a business plan being drawn up by B&B chief executive Richard Pym detailing expected profits and job details will be published.

Mr Davies secured a place on a committee hearing at which Treasury minister Ian Pearson indicated shareholders would get some compensation.

The Treasury said the Chancellor had decided to appoint an independent valuer to ensure that both shareholders and taxpayers were treated fairly.

Mr Davies said: “I am encouraged that the minister said Bradford & Bingley shareholders will get some form of compensation. But I am disappointed that there is an unlimited time limit for the valuer to come to a decision and that the Government will not make an interim payment in the meantime.”