The UK government has extended its trading plan to sell off Natwest by two years.

Natwest was bailed out by the UK government at the height of the 2007-09 global financial crisis when its near-collapse left the UK on the brink of financial collapse. Small sales have left the government with a 41.5 per cent holding, with the bank returning to majority private ownership after 14 years last March.

The current trading plan will see the government drip-feed further stock into the market. The government said it would consider larger sales to private investors or directly to Natwest when they "achieve value for money for taxpayers".

The plan has been extended to 11 August, 2025, with the government able to sell up to 15 per cent of its stake over the two-year period. This is the second time the plan has been extended after its official launch in 2021, with Morgan Stanley still overseeing its implementation.

Natwest bought over £1 billion worth of stock directly from the government between March 2021-22, but is yet to make any further purchases this year in light of recent market volatility instigated by the collapse of Silicon Valley Bank.

Around £3.7 billion to date has been raised by selling shares, but each sale so far has amounted to losses for taxpayers.

The government reiterated its intentions to fully privatise Natwest by 2026 in its budget last month.

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