The Treasury has cut its stake in NatWest to 17.97% from 18.99% as the government continues to chip away at its stake in the bank.

The lender’s stock market statement shows that the taxpayer’s stake in the business has more than halved this year, as Chancellor Rachel Reeves bids to fully exit the holding by 2025-26.

Last month, Reeves scrapped the former Conservative administration’s plans to sell the state-owned shares to the general public in high profile TV campaign that would have featured former newsreader Sir Trevor McDonald.

Reeves said the discounted public sale would “not represent value for money”.

The Treasury’s share sales in the bank have hit two milestones so far this year.

In March, the shareholding fell below 30%, meaning the government was no longer classed as a “controlling shareholder”

And in July, the stake dropped below 20% meaning that by next year, the state will no longer be considered a “related party” – which requires additional transparency around its relationship with the bank.

The state rescued the bank from going bust during the height of the financial crisis in 2008, taking an 84% stake in the business after pumping £45.5bn into the lender.