State secondary schools should be gifted shares in NatWest (NWG) to help improve students’ understanding of banking, asset ownership and financial literacy, the Treasury has been urged.
The proposal, to be outlined in Parliament today by Investors’ Chronicle contributor Lord Lee of Trafford, would see around 4,400 schools awarded blocks of around £5,000-worth of shares in the lender.
As part of the scheme, Lee has suggested pupils could decide on how to use NatWest’s dividends. “For instance, it could include spending on an item for the school, subsidising a visit or donating to a local charity,” he will argue. “In addition, there could be an opportunity to attend NatWest’s digital AGM.”
“All this would help to raise youngsters’ awareness of banks and how they operate – as well as the stock market.”
The government, which continues to own a 39 per cent stake in NatWest, last week signalled its intention to involve retail investors in further disposals. “It’s time to get Sid investing again,” Chancellor Jeremy Hunt told parliament in his Autumn Statement, echoing a campaign that encouraged the public to participate in the privatisation of British Gas (now Centrica) under Margaret Thatcher’s government in the 1980s.
Both NatWest and the Treasury declined to comment on the proposal, or the timing of any share sales.
Lord Lee is also keen to encourage other quoted UK businesses to gift shares to secondary schools, in order to help strengthen local and national ties between the two groups. At least one main market-listed company has told Lee it would sign up to such a scheme.
One early political backer of the NatWest proposal is Lord Kenneth Baker, who led the privatisation of BT (BT.A) and pushed to get computers into schools as minister for industry and information technology under Thatcher’s first government. “I support John’s proposal because it would lead to more private shareholders sharing in the success of a national asset,” he said.
