The previous Conservative administration’s plan to offer shares to the public at a discount, accompanied by a promotional campaign, has been deemed an imprudent use of taxpayer funds by Chancellor Rachel Reeves.

Originally set for this summer, the mass-market sale was designed to entice ordinary investors with discounted and bonus shares. However, the unexpected general election called by Rishi Sunak halted these plans. Reeves criticised the retail share sale, estimating it could cost taxpayers up to £450 million, and opted instead to sell the remaining state-owned shares to large institutional investors.

NatWest, formerly Royal Bank of Scotland, was bailed out with £46 billion of public money during the 2008-2009 financial crisis, resulting in 84% taxpayer ownership. The Treasury has gradually reduced its stake, now below 20%, with a target to completely exit by 2025-26.

Despite spending £24 million on preparations for the now-scrapped retail sale, NatWest remains supportive of the chancellor’s strategy.