The UK government has sold its last shares in NatWest Group, ending nearly 17 years of public ownership. The government took control of the bank during the 2008 financial crisis to protect millions of savers, businesses, and jobs. This final sale marks the end of a major chapter in UK history.
Why Did the Government Take Over NatWest?
In 2008 and 2009, the government provided £45.5 billion to save Royal Bank of Scotland (now NatWest), which was one of the biggest banks in the world with over 40 million customers. This action stopped the bank from collapsing, which would have caused huge damage to the UK economy and people’s savings.
How Has the Government Sold Its Shares?
Since 2015, the government gradually sold its shares through different sales and buybacks, raising around £35 billion through share sales, dividends, and fees. The peak government ownership was 84.4%. A planned retail sale in 2024 was cancelled to avoid taxpayers losing hundreds of millions due to discounted shares.
What Does This Mean for Taxpayers?
Although the government recovered about £10.5 billion less than it originally invested, experts say letting the bank fail would have been far worse for the economy. The government focused on selling shares at market value to protect taxpayers and raise money for public services like the NHS, education, and defence.
Official Comments
Chancellor Rachel Reeves said the government made the right decision to protect savers and the economy during the crisis and that now they are focusing on the UK’s future. Economic Secretary Emma Reynolds said this sale is an important milestone for the UK banking sector and praised the careful approach taken to protect taxpayers’ money.
The government’s exit from NatWest ownership marks the end of years of public intervention in the banking sector after the financial crisis. Thanks to this careful management, the UK avoided a worse economic disaster and has now turned the page to a new era.
