#AceBreakingNews – Post Update:June.10: The government plans to sell its stake in the Royal Bank of Scotland, Chancellor George Osborne has announced in his annual Mansion House speech.
Mr Osborne said the “decision point” had been reached.
He received advice from Governor of the Bank of England Mark Carney and a review by investment bank Rothschild.
Mr Carney said a phased sell-off “would promote financial stability, a more competitive banking sector and the interests of the wider economy.”
The government provided a £45.5bn bailout in 2008, paying around 500p a share. The share price currently stands at 354.8p.
The Chancellor argued that the sale must be seen as a whole and the share price will increase in subsequent offerings as confidence grows.
Mr Osborne said: “It’s the right thing to do for British businesses and British taxpayers. Yes, we may get a lower price than Labour paid for it. But the longer we wait the higher the price the whole economy will pay.”