RBS shares raise £2.1bn at £1bn loss for the taxpayer
Chancellor George Osborne says the sale of 5.4 per cent of RBS will pay down the national debt, but the reduced price raises questions about the timing and speed of the sale.
The Treasury has sold the 5.4 per cent stake of the Royal Bank of Scotland at 330p a share – short of the 502p price paid by the Government when it bailed out the bank at the height of the financial crisis.
Chancellor George Osborne said the £2.1billion would be used to pay down Britain’s national debt.
He said: “This is an important first step in returning the bank to private ownership, which is the right thing to do for the taxpayer and for British businesses: it will promote financial stability, lead to a more competitive banking sector, and support the interests of the wider economy.”
However, Labour has raised concerns about the speed and timing of the sale.
Shadow Treasury minister Barbara Keeley described the sale as “cavalier.”
Speaking this morning she said: “there could be a loss of £1billion on this part of the sale, and you have to ask: where are the priorities of a Government which has just given up on its cap on care costs leaving thousands paying down their own social care and losing a billion pounds overnight?
“That would have gone a long way towards helping people pay for social care,” she told the BBC.
‘More work to be done’
Chancellor George Osborne said the move had the backing of Bank of England governor Mark Carney.
Ross McEwan, chief executive of RBS, said: “I’m pleased the Government has started to sell down its stake – It’s an important moment and reflects the progress we are making to become a stronger, simpler and fairer bank.
He acknowledged there is more work to be done, but said “we’re determined to build a bank the country can be proud of.”