The taxpayers’ holding in NatWest, trading north of the border as Royal Bank of Scotland, has fallen below 4% as the bank edges closer to being fully back in private ownership.

It is expected that will take place in July, 17 years after it was bailed out by Alistair Darling who, as Chancellor, had been told the bank was hours from collapsing.

Investment group BlackRock has recently replaced the taxpayer as its biggest single shareholder.

The bailout saw the Government take an 84% stake in Royal Bank of Scotland and the holding remained as high as 40% as recently as the beginning of last year.

Following the latest sale, it is now 3.95%, leaving the state with 318.7 million shares currently worth £1.5 billion.

Former Chancellor Jeremy Hunt’s plan for a sale of the remaining shares to the public, to help stimulate interest in share ownership, was ditched when the general election was called last summer. New Chancellor Rachel Reeves decided not to proceed with the idea.

Royal Bank of Scotland was rebranded NatWest in 2020 by former CEO Alison Rose amid speculation that it was designed to distance the bank from its past, which it has denied.