The chancellor’s sell-off of the first tranche of UK government shares in the Royal Bank of Scotland could not have been more poorly timed (Report, 5 August). The predicted £1bn loss on the price paid for the stake when the bank was bailed out demonstrates that we, the taxpayers, have been ridiculously shortchanged. This is especially troubling given the fact that six months ago the shares traded at over 400p, whereas at their sale they were traded at 330p.

While the chancellor aims to promote “financial stability” through this sale, it is difficult to see what sort of instability required it to be done so quickly, with the loss of £1bn for a 5% holding. The chancellor must also justify why, given his austerity agenda, he is able to so easily write off such a huge amount of money, equivalent to a twelfth of his proposed welfare cuts.

Continue reading…
Source: The Guardian Circular Economy RSS