THE SNP has welcomed Chancellor George Osborne's decision to sell off shares in the Royal Bank of Scotland but warned taxpayers must not be short-changed.

The sell-off comes seven years after the Government rescued RBS with a £45.5billion bailout at the height of the financial crisis.

Mr Osborne insists the banks needs to be returned to the private sector for the economy and to help the financial institution rebuild itself.

He said: "This is an important first step in returning the bank to private ownership which is the right thing to do for the taxpayer and British business.

"It will promote financial stability, lead to a more competitive banking sector and support the interests of the wider economy.

"While the easiest thing to do would be to duck the difficult decisions and leave the RSB in state hands, the right thing to do for the economy and the taxpayer is to start selling off our stake."

SNP economy spokesman and depute leader Stewart Hosie said while he welcomed the RSB moving from Government ownership back into the private sector but insisted it should not be on the cheap.

He said: "The taxpayer should not and cannot be short-changed by the Chancellor.

"George Osborne needs to be open and honest about his plans for the rest of the stock in RBS as we look forward.

#"We need to see the small print of the government's plans to ensure a fair deal. Right now there is some very real concern that the Chancellor is trying to cut and run.

"Once the full sale of the stock is complete, the taxpayer must receive the full £45.8billion paid by the previous government in 2008. The public must get every single penny back."