Osborne announces plan to sell Lloyds shares - Banking - News - Moneyfacts


Osborne announces plan to sell Lloyds shares

Osborne announces plan to sell Lloyds shares

Category: Banking

Updated: 20/06/2013
First Published: 20/06/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Chancellor, George Osborne, has confirmed the Government is considering the sale of Lloyds Banking Group shares to the public.

Speaking at the annual Mansion House meeting in London yesterday, Mr Osborne stated that the Government was keen to take steps to return the bank to private ownership following its £25 billion bail out by UK taxpayers in 2008.

Over the past five years, Lloyds has been seen to generate "healthy returns" within its retail and commercial businesses and is now, according to the Government, in a good position to be returned to the private sector.

"I can announce that we are actively considering options for share sales in Lloyds," said Mr Osborne.

"Of course, we will only proceed if we get value for the taxpayer. Shares are already trading at around the price where selling would reduce the national debt. That's something we all want to see."

Hopes that the Government would be selling its 82% stake in Royal Bank of Scotland (RBS) were put on hold; however, as the Chancellor indicated that it could instead be split into a good and bad bank at no further expense to the taxpayer.

Subject to meeting three core Treasury objectives; whether the split supports the British economy; if it's in the interests of taxpayers and if it accelerates the return to private ownership, the move would mean all 'bad assets' are removed from RBS and placed into the 'bad bank'.

"We're not prepared to put more taxpayer capital into RBS as part of this process," Mr Osborne added.

The review into whether RBS should be split is due to take place imminently, with a final decision expected in the autumn.

What next?

Bank Account Search - Find the best bank account for you
Compare the best savings rates
Compare the Best Mortgage Deals

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

More people are switching current accounts

Competition in the current account market remains intense, which means if you’re not happy with your account for any reason, now’s a great time to switch! Happily, more and more people seem to be getting in on the switching action...

Financial services complaints continue to fall

Many people feel dissatisfied with their financial providers at times, but happily, it looks as though the most serious complaints are becoming less and less common.

Contactless spending hits yet another record

Contactless spending is going from strength to strength, hitting new records on a seemingly monthly basis - and it’s just broken yet another one, with monthly contactless spending having passed the £2bn mark for the first time.