New chancellor Rachel Reeves said she is abandoning the previous government's plans to sell the remaining taxpayer-owned shares in NatWest Group PLC (LSE:NWG) via a retail offer.
In the March Budget, previous chancellor Jeremy Hunt had announced plans for a retail offer this summer, but Rishi Sunak's decision to call a snap general election put this on pause.
Reeves and the Treasury still intend for the government to fully exit what is now less than a 20% shareholding in NatWest.
The full report from the Treasury stated: "As part of a commitment to fiscal discipline, it is important that the government seeks to ensure value for money when disposing of assets.
"The government intends to fully exit its shareholding in NatWest, resolving one of the last remaining legacy issues from the financial crisis.
"However, it will do this in a way that delivers value for money for taxpayers that funded these interventions.
"A retail share sale would not be value for money relative to other options for disposing of shares and so will not go ahead.
"The substantial size of incentives needed to attract investors in such offers can cost hundreds of millions of pounds, depending on the extent of the discount and how many shares are offered.
"Instead, the government will continue to use existing disposal methods to deliver value for money sales and expects a full exit to be achieved by 2025-26, subject to market conditions."
The stake in what had been RBS resulted from an emergency government bail-out in the 2008 financial crisis, which left 84% of shares in the hands of the Treasury.
Earlier this month, the state's shareholding in the lender fell below 20% after a series of sales in recent years.
According to a regulatory filing on 15 July, UK Government Investments Ltd reduced the stake to 6,645,166,452 shares, or 19.97%, down from around 37% at the start of the year and 50% just over two years ago.
** Update: Adds full details from Treasury statement **