Economic Secretary (): I can inform the House
that the government has announced an extension to its existing
trading plan to sell part of the government’s shareholding in
NatWest Group (NWG, formerly Royal Bank of Scotland, RBS). The
current trading plan was due to end in August 2023. Following its
strong progress to date in reducing the government’s shareholding
in NWG, the trading plan has been extended for a further two
years, allowing sales to continue under the plan until August
2025. This announcement demonstrates continued progress towards
the government’s intention to return its NWG shareholding to
private ownership by 2025-26.
Policy rationale
It is government policy that where a government asset no longer
serves a public policy purpose, the government may choose to sell
that asset, subject to being able to achieve value for money.
This frees up public resource which can be deployed to achieve
other public policy objectives.
The government is committed to returning NWG to full private
ownership, given that the original policy objective for the
intervention in NWG – to preserve financial and economic
stability at a time of crisis – has long been achieved. At Spring
Budget 2023, the Chancellor reiterated the government’s intention
to fully dispose of its NWG shareholding by 2025-26.
Trading plan detail
A trading plan involves selling shares in the market through an
appointed broker at market value over the duration of the plan.
Trading plans are an established method of returning
government-owned shares to private ownership, while protecting
value for the taxpayer. This method was used in the sale of the
government’s stake in Lloyds Banking Group.
The trading plan for the government’s NWG shareholding will be
extended for two years, terminating no later than 11 August 2025.
Shares are only sold at a price that represents fair value and
delivers value for money for the taxpayer. The final number of
shares sold will depend on, amongst other factors, the share
price and market conditions throughout the duration of the
trading plan. Since the NWG trading plan was established in
August 2021 it has made significant progress in reducing the
government’s shareholding, with over £3.7 billion in proceeds
raised from sales that have delivered value for money for the
taxpayer.
UKGI and HMT will keep other disposal options under active
consideration. The decision to extend the trading plan does not
preclude the government from using other disposal options to
execute further transactions that achieve value for money for
taxpayers.
