Glossary: UK Financial Investments

The UKFI was established on 3 December 2008 to manage the government’s investments in financial institutions, including the Royal Bank of Scotland (RBS), Lloyds TSB/Halifax Bank of Scotland (Lloyds Banking Group), Northern Rock and Bradford & Bingley. The aim of UKFI is to protect the UK taxpayers’ investment in these companies and to help the companies “create value” so the government’s shares in these companies can be gradually sold back into the market at a profit. As an idea to how big an exposure the UK taxpayer has, if the government’s stake in these banks falls 1%, this is equivalent to the annual defence budget of £37bn and a 3% fall is the NHS budget of £110bn.

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