Hunt eyes Budget to fire up NatWest share sell-off as broker warns stock will need a big price discount

Jeremy Hunt is expected to confirm plans for the NatWest share sale at next week’s Budget, as a leading broker said a big discount to the price would be key to its success.

The Chancellor said in November he was considering a retail public offering as the Treasury aims to sell more of its 33 per cent stake.

The Government is consulting brokers such as Hargreaves Lansdown and AJ Bell. The companies and the Treasury declined to comment. A city source said: “We are all on edge.”

It is not yet clear whether Hunt will set out the scale or timing of a sale, even if he confirms such a move in the Budget.

UK Government Investments, which manages taxpayer participation, has said it could arrive in June.

Tim Jacobs, of Hargreaves Lansdown, said: ‘NatWest has generated great customer interest and we expect it to grow rapidly. The discount offered will be an important factor in the success of the offer.

NatWest – then known as RBS – received a £45bn bailout from taxpayers during the 2008 financial crisis.

That left the Government with more than 80 percent of the lender, a stake that has been reduced, although it remains the largest individual shareholder.