STORY
The UK Government has sold its remaining stake in NatWest Group plc, marking the end of almost 17 years of state ownership that began with the 2008 financial crisis bailout. The final tranche of shares was sold at market price today, returning NatWest fully to private hands and closing a chapter that saw taxpayers underwrite more than £45 billion to stabilise the bank (then known as Royal Bank of Scotland). Originally nationalised to prevent a systemic collapse in late 2008, the Government acquired an 84 percent stake in what was then RBS at an average price of 502 pence per share. Over successive stages of divestment—through public offerings, share buybacks by NatWest itself and targeted institutional sales—the Treasury gradually reduced its holding. As of mid-May 2024, only around 10 percent remained, and today’s sale of the last shares concludes the disposal plan announced in July 2021 and extended in April 2023.
Chancellor Rachel Reeves said the transaction “turns a historic page” while stressing the necessity of protecting savers and businesses at the height of the financial crisis. She noted that, since the Labour Government took office, share sales have been conducted with taxpayers’ interests front and centre, ensuring all disposals took place at prevailing market prices. Despite recouping roughly £35 billion through dividends, fees and previous share sales, the overall cost to the public purse stands at about £10.5 billion once financing costs are included. NatWest’s share price has recovered strongly in 2025, trading above 520 pence in recent weeks, but the aggregate losses reflect the steep discounts at which earlier tranches were sold—often below the 2008 bailout price.
The government’s financial vehicle, UK Government Investments (UKGI), confirmed that the remaining stake—well under 1 percent of the bank—was transferred via an orderly trading plan. With HM Treasury no longer holding any NatWest shares, UKGI has closed this chapter on its investment portfolio, which at its peak included stakes in a range of bailed-out financial institutions. Emma Reynolds MP, Economic Secretary to the Treasury, highlighted the broader impact of the bailout: “Millions of savers and businesses were shielded from potentially catastrophic contagion. Today’s exit does not erase the fiscal cost, but it does mark the full return of NatWest to the private sector, reflecting more than a decade and a half of careful stewardship of taxpayers’ money.”
NatWest itself has evolved considerably since rebranding in 2020, refocusing on core retail and commercial banking in the UK. Now entirely privately owned, the bank faces renewed pressure to drive lending growth and support economic recovery amid an increasingly competitive environment. Analysts expect NatWest to pursue strategic acquisitions and expand its fee-based services to sustain profitability. With this final share sale, the Government’s direct involvement in the banking sector has officially ended, following previous exits from Lloyds Banking Group and other institutions rescued during the crisis. Officials confirmed that no further state shareholdings remain in UK retail banks, underlining a return to normalised market operations.