It would seem that Anna in Virgin Atlantic customer services had managed to come through on behalf of the customer and not the airline.
Here is the email I just received.
Dear Mr Clark
Thank you for calling and speaking with me yesterday.
Once again, I'm sorry for the disruption to your flight. As you’re aware, the aircraft that was due to fly in from the UK and operate your flight was delayed overnight in Manchester because of heavy snow. We had no choice but to delay your flight overnight in reaction to this. I do hope you will accept my sincere apologies for any inconvenience this disruption has caused you.
With regards to your query for compensation, all affected passengers booked in our Economy cabin can receive 12500 miles as an apology for the flight delay. As such, I’ve arranged for your account to be updated with this number of miles today.
In addition, any food, accommodation or telephone costs incurred can be reimbursed also. If you have any such costs that you would like to claim, please forward me copies of your receipts.
I know that this experience has created a poor impression, Mr Clark. However, I hope this hasn’t discouraged you from travelling with us again, and future flights are trouble free and enjoyable in every respect.
With kindest regards
So I think that Virgin Atlantic may be on the way to redeeming themselves on this one. I've been a loyal customer for years and really don't like British Airways and their stuck up attitude.
I'll just need to submit my expenses and see if they really will pay them.
I'll keep you posted.
In the meantime, thanks to Anna at VA for looking into my case and resolving it so swiftly.