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<p>Following significant further progress made by the Royal Bank of Scotland (RBS)
in resolving its legacy issues, Budget 2018 set out the government’s intention to
undertake a full disposal of the RBS shareholding by 2023-24, subject to market conditions
and achieving value for money. This built on the intention set out at Autumn Budget
2017 to dispose of around £15 billion of shares by 2022/23.</p><p>Returning RBS to
private ownership is the right policy for taxpayers, customers and the wider economy.
It was never the intention that government would be a permanent shareholder in RBS.
The government intervened in RBS to protect ordinary savers and businesses, and to
prevent the collapse of a bank which was vital to the functioning of the UK economy
and financial system. It was not a speculative investment designed to make a profit.</p><p>
</p><p>The government keeps the timing and method of future disposals under constant
review but will only undertakes sales when it can achieve fair value – that is, when
the share price accurately reflects the current and future prospects of RBS. RBS is
a fundamentally different, smaller and more sustainable bank today compared to 2008.
As a result, we have to accept that the shares are worth less than the price the then
government paid for them.</p>
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