George Osborne signals RBS selloff in Mansion House speech

Sale of bailed-out bank's shares at present prices means a 13bn shortfall for taxpayer from 2008 part-nationalisation

George Osborne on Wednesday night signalled his readiness to start selling off the Royal Bank of Scotland, seven years after it was rescued from collapse by the taxpayer.

The chancellor said the time was right for British business and taxpayers to start selling off part of the 79% stake in the Edinburgh-based bank, even though the shares are worth 13bn less than the state paid for them during the financial crisis. The shares will be sold to major City institutions in the coming months. An offer for members of the public, as has been promised for Lloyds Banking Group, could follow.