ÂŁ13bn taxpayer rip-off

By selling off the public stake in the Royal Bank of Scotland, George Osborne is short-changing the public and wasting a historic chance to bring needed change to Britain’s banks, warned Unite.

In his annual Mansion House speech last night (June 10) George Osborne announced that the government would put up its 80 per cent share in RBS for sale to big City investors.

The bank received ÂŁ45bn of the taxpayers’ money following the 2008 financial crisis. While a final date to begin the sell-off is yet to be named, the public’s share in the bank is expected to be sold at a substantial loss. The New Economics Foundation estimates this will result in a ÂŁ13 billion loss to the taxpayer.

“Like Royal Mail and British Gas before it, the Tories are ripping off the public by selling our stake in RBS at a knock down rate to city investors,” said Unite national officer for finance Rob MacGregor.

“That Osborne is choosing to let the Treasury lose out on millions, while using the deficit to justify ÂŁ12bn in welfare cuts shows he is motivated by pure ideology.

“Since 2008, thousands of Unite members have worked to bring Britain’s banks back from the brink. Yet from misselling to rate rigging, the boardrooms remain rife with scandal and misconduct,” MacGregor added.

“A government determined to force the banks to reform would use the publics’ stake in RBS to support the bank’s workers, bring transparency to the boardroom and restore trust in the industry.

“If George Osborne follows this fire sale by scrapping the bank levy and returning the light touch regulation that led to the financial crisis, the task of bringing positive change to our banks must come from below, led by staff and supported by the public.”