The Government has sold off more shares in NatWest to take its stake in the bank below 20%.

In a statement to the London Stock Exchange, NatWest confirmed that the Treasury’s stake in the bank is now standing at 19.97%, having come down from just under 38% in December last year, and from just under 30% in March.

NatWest was nationalised during the 2008 financial crisis, when a £46bn bailout left the Government with an 84% stake in the bank, which at the time was known as the RBS Group.

Since then, the Government has been gradually reducing its shareholding in the bank, although these plans were temporarily put on hold when former Prime Minister, Rishi Sunak, announced that the General Election would take place in July.

The former Chancellor, Jeremy Hunt, had also earlier this year suggested the Government was planning to have sold the entire stake in NatWest by 2026.

Under listing rules, falling below the 20% mark means that the Treasury will no longer be considered a related party to the bank from a year today.

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