The government has announced it will sell more of its shares in Lloyds Banking Group.
It has announced today that it will sell another 7.5 per cent of the bank which was partly nationalised after the credit crisis left it too weak to stand alone.
The body that looks after the government’s stake in Lloyds advised the sale and the Chancellor, George Osbourne, agreed the move.
The share are worth £4.2 billion on today’s market. The move is part of a longer term plane to return the lender fully to the private sector.
With the sale, the government’s stake will fall from 33 per cent of the total to 25 per cent.
A spokesman for the Treasury said the government had set out its objectives for its shareholdings in the banks in the chancellor’s annual Mansion House address last June.
He said this was getting the best value for the taxpayer, maximising support for the economy and restoring private ownership - and as set out in that address, the government will only conclude a sale if these objectives are met.