The Office for Budget Responsibility will “significantly” cut its forecasts for the revenues the government will receive from state-owned banks following share price falls post-Brexit.
The OBR will make a significant cut to its estimates of the amount the government could make from selling its remaining stakes in Lloyds and Royal Bank of Scotland, Sky News reports.
In March the OBR said the government could generate £21.5bn from the sale of RBS shares. However, with shares in the bank having plummeted post-Brexit, the government’s 73 per cent stake is now only worth around £18bn.
On Monday, RBS shares were trading at around 179p, around one-third of the 502p average cost paid by the government nearly eight years ago.
The update from the OBR will come at the next Autumn Statement, or the emergency Budget, if it occurs.