Independent investors have expressed their concerns over the plans to break up the Royal Bank of Scotland to the chairman Sir Philip Hampton.

Sir Hampton has said that only independent minority shareholders will be able to vote on plans to split the bank into separate entities. He added that the bank would take legal advice but pointed out that he believes that the government will not be able to use its 81 per cent holding in the bank to vote on the matter.

Osborne has also said that the government is aiming to break up the Royal Bank of Scotland into separate entities. The government has an 82 per cent stake in the Royal Bank of Scotland and indicated that the bank might be split into a good bank and a bad bank with troubled assets. The bank had recorded a profit but was facing high level of toxic assets and the government officials have been looking for ways to revive the bank.

Meanwhile, the Financial Conduct Authority (FCA) has imposed a penalty of £5.6 million on the state-owned Royal Bank of Scotland for issues in reporting trades to regulators.