A trading plan involves selling shares in the market through an appointed broker in an orderly way at market prices over the duration of the plan.

The current trading plan which began on 12 August 2021 has been extended for a further 12 months from 12 August 2022, with sales terminating no later than 11 August 2023.

In a statement, the Treasury said extending the trading plan supports the government’s intention to return NatWest Group to full private ownership by 2025-26, after acquiring the shareholding as a result of the global financial crisis. The government currently has a c. 48.5% shareholding in NatWest Group and will only dispose of its NatWest Group shareholding when it represents value for money to do so and market conditions allow.

Since it was established, the government has sold approximately 703.5 million shares through the trading plan raising approximately £1.6 billion in proceeds for the taxpayer.

Shares will continue to only be sold through the trading plan at a price that represents value for money for taxpayers. There is a cap on the total number of shares that could be sold through the trading plan. The final number of shares sold will depend on, amongst other factors, the share price and market conditions throughout its duration.

HMT and UK Government Investments continue to keep all options and timings under review for future sales.

The Treasury highlighted that extending the trading plan does not preclude government from using other options to execute future transactions that achieve value for money for taxpayers, including further directed buybacks and/or accelerated bookbuilds.