The government has sold off additional shares in NatWest, bringing its stake in the bank down to around 15.9%.
This comes after Chancellor Rachel Reeves cancelled the previous government’s retail sale, which was set up to reduce its stake in NatWest and return it to full private ownership.
At the time, Reeves said the government would still aim to completely relinquish its holding in the bank by 2025-26, but said: “Having considered advice, I have concluded that a retail share sale offer would involve significant discounts that could cost taxpayers hundreds of millions of pounds.”
Reeves added: “It would therefore not represent value for money, and it will not go ahead. It is a bad use of taxpayers’ money, and we will not do it.”
A follow-up audit explained: “Instead, the government will continue to use existing disposal methods to deliver value-for-money sales and expects a full exit to be achieved by 2025-26, subject to market conditions. This will secure the best outcome for the taxpayer and wider public services.”
In July, the government’s holding in NatWest fell below 20%, the first time it held a minority stake in the bank since 2008.
Market Moves: Understanding UK Housing Trends
Introducing the first in our video series “Market Moves: Understanding UK Housing Trends” The
Sponsored by Halifax Intermediaries
The state injected £45.5bn into NatWest’s parent company the Royal Bank of Scotland (RBS) at the height of the global financial crisis between October 2008 and December 2009.
It became the majority stakeholder of RBS in November 2008 with a 58% stake. In December 2009, this was increased to 84.9%, resulting in total economic ownership.
