NatWest Welcomes Government's Commitment to Full Privatization
- Chancellor Rachel Reeves criticizes the previous government's approach to selling shares in NatWest, labeling it a poor use of taxpayer resources.
- Despite the cancellation of the share sale plans, the current administration remains committed to fully privatizing the bank by 2025-26.
- This decision reflects a significant shift in fiscal policy regarding public assets.
NatWest has expressed its approval of the government's pledge to return the bank to full private ownership, following the chancellor's announcement to cancel a planned retail share sale. This initiative was intended to be supported by a marketing campaign reminiscent of the "Tell Sid" campaign from the 1980s, which promoted the sale of shares in British Gas after its denationalization. However, the rollout was halted due to Prime Minister Rishi Sunak's unexpected call for a general election. Once known as the Royal Bank of Scotland, NatWest was significantly bailed out during the 2008 financial crisis, with taxpayers owning up to 84% of the bank after a £46 billion rescue. The Treasury has been gradually reducing its stake, which has recently fallen below 20%. Despite this progress, the proposed retail share sale was projected to potentially cost taxpayers around £450 million, prompting the chancellor to reconsider its viability. The chancellor emphasized that the government remains committed to fully exiting its shareholding in NatWest by the fiscal year 2025-26, asserting that the retail share sale would not provide value for money and would be an imprudent use of taxpayer funds. The decision to scrap the plans has already incurred costs, with NatWest reporting an expenditure of £24 million on the abandoned initiative, including advertising efforts. As the situation unfolds, NatWest continues to navigate its path toward privatization while addressing the financial implications of the government's decisions.