skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
  • cover play_arrow

    Rother Radio (128k) Love Local, Love Music!

  • cover play_arrow

    Rother Radio (64K) Love Local, Love Music!

  • cover play_arrow

    Hit Music Radio (128K) More Music Variety!

  • cover play_arrow

    Hit Music Radio (64K) The Best Variety of Hits!

Business News

Sunak offloads £1.1bn chunk of state-backed lender NatWest


share close

The government has sold a £1.1bn chunk of NatWest taking its holding in the state-backed bank to less than 60%.

NatWest, then known as Royal Bank of Scotland, was saved by taxpayers in a £45.5bn rescue deal during the financial crisis more than a decade ago.

The latest deal reduces the Treasury’s holding in the lender from 61.7% to 59.8% after a tranche of shares was sold back to NatWest – rather than to the market.

Chancellor of the Exchequer, Rishi Sunak outside 11 Downing Street, London, before heading to the House of Commons to deliver his Budget. Picture date: Wednesday March 3, 2021.
Image: The deal was authorised by chancellor Rishi Sunak

Chancellor Rishi Sunak and UK government investments – the body responsible for state holdings in rescued lenders – authorised the process.

The Treasury said: “It represents an important step in the government’s plan to return institutions brought into public ownership as a result of the 2007-2008 financial crisis to private ownership.”

NatWest’s return to the private sector has been a much more protracted affair than that of fellow bailed-out bank Lloyds Banking Group – with the government disposing of its last remaining stake in that bank in 2017.

The government has not sold any of its holding in NatWest since 2018, when it disposed of a £2.5bn part of its stake. It previously sold £2.5bn worth of shares in 2015.

More from Business

Its latest announcement comes as official figures illustrate the continuing parlous state of public finances thanks to the coronavirus pandemic, with borrowing for February alone at £19.1bn – £17.6bn higher than a year earlier – adding to a £2.1trn debt pile, equivalent to 97.5% of GDP.

The crisis has also weighed on banks, including NatWest, which reported a £351m annual loss for 2020.

Meanwhile in a separate development, it was announced this week that the lender is facing criminal charges brought by the City watchdog over claims that it failed to adhere to money laundering rules.

 Sky News

© Sky News 2021

Written by: Rother Radio News

Previous post

Business News

Consumer confidence climbs to highest level in a year – survey

Consumer confidence has recovered to its highest level in a year with households becoming more optimistic about their financial prospects as lockdowns ease, new figures suggest.A monthly index from market research firm rose from -23 in February to -16 this month - still lower than normal but the highest level since last March. The report said that the rise was "on the back of well-received budget announcements, the successful vaccine roll-out and roadmaps in place for ending lockdown". Please use […]


Similar posts

Search Rother Radio

About Us

Rother Radio – Love Local, Love Music! → Discover more