John McDonnell calls for ‘halt’ to RBS shares sell-off amid fears of billions in losses
1 min read
John McDonnell has called on the Treasury to halt a rumoured sell-off of Royal Bank of Scotland shares amid fears that it could cost the taxpayer billions in losses.
The Shadow Chancellor was responding to reports that the Government was preparing to offload 10% of its stake in the bank this week.
RBS was taken into public ownership during the 2008 financial crisis. A decade on from the crash, UK taxpayers still hold a 71% stake in the bank.
In November it was announced that £15 billion worth of shares would be sold off over the next 5 years, with £3 billion set to be relinquished this year.
However, concerns have been raised over the prospect of billions in losses, with the bank’s share price currently at around 290p – just over half the 502p the Government paid during the bailout.
Mr McDonnell said: “There is no economic justification for a further sell-off of RBS shares and it beggars belief that this government is considering selling shares at an even bigger loss to the taxpayer than the £1 billion George Osborne managed.
“All further sales of RBS shares should be halted, and the bank reorganised under public control to help provide the patient, long-term investment capital that businesses across the country so urgently need.”
A Treasury spokesperson said: "We don't comment on market speculation."
A spokesperson for RBS declined to comment.
PoliticsHome Newsletters
PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe
