The Treasury has sold another slug of its stake in NatWest as the government continues to eat away at its holding in the bank.

It disposed of just over 1% of its shares in the bank for around £5.3m, taking its holding down to 14.8%, according to a stock market statement.

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

In September, 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.