Former NatWest boss Dame Alison Rose is to lose £7.6m of her payout as the bank group seeks to draw a line under the debanking row sparked by the closure of Nigel Farage’s Coutts accounts.

However, she will still receive around £1.7m.

Dame Alison stepped down in late July after admitting she discussed the former UKIP leader’s banking arrangements with a BBC journalist.

This week, the Information Commissioner’s Office was forced to make a grovelling apology to Dame Alison after it claimed she had broken privacy laws – an apology which prompted a furious response from Mr Farage.

It emerged following a subject access request by Mr Farage that NatWest employees had belittled the broadcaster and former politician, making a stream of pejorative comments about his views and finances.

Last month, the bank apologised to Mr Farage, acknowledging that it had been guilty of “serious failings” in the way it had treated him.

The decision to “debank” Mr Farage sparked a firestorm in Westminster and forced the City watchdog into an urgent review of the practice across Britain’s banking sector.