Chancellor extends Lloyds trading plan

Chancellor George Osborne has extended a plan to sell down the Government’s stake in bailed-out Lloyds Banking Group as it was disclosed that the holding has now been cut to less than 19 per cent.

Monday, 1st June 2015, 10:14 am
Lloyds Banking Group chief executive Antonio Horta-Osorio, pictured during a visit to Halifax

The Treasury has reduced its shareholding in Lloyds from 25 per cent since the trading plan for a gradual disposal of the stock through Morgan Stanley was announced last December, raising almost £3.5bn.

It has now extended the plan, due to end on June 30, until December 31 - as it was hailed a “huge success” by the Chancellor. It is likely to mean another chunk of around 6 per cent of the stock sold into private hands.

The announcement came after the latest statutory stock market disclosure on the Treasury’s Lloyds holding, as it fell to 18.99 per cent.

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The Treasury said that during the trading plan so far shares have been sold for an average price of more than 80p, well above the average 73.6p originally paid for them.

It said it had now recovered more than £10.5bn from the bank - which was rescued by taxpayers at the height of the financial crisis.

Mr Osborne has set out plans to sell £9bn of Lloyds shares during 2015/16, including about £4bn through a discounted offer to retail investors.

He said: “The trading plan has been a huge success, with almost £3.5bn raised for the taxpayer so far.

“This means we have now recovered over £10.5bn in total - more than half of the taxpayers’ money put into Lloyds - and we now own under 19 per cent of the bank. But we’re determined to get on with the job of returning Lloyds to private ownership.

“That’s why I’m extending the plan for six months so that we can make even more progress in returning money to the taxpayer and paying down the national debt.”

A Lloyds spokesman said: “Today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back.

“This reflects the hard work undertaken over the last four years to transform the group into a simple, low-risk and customer-focused bank that is committed to helping Britain prosper.”

Lloyds is a major private sector employer in Yorkshire, through its ownership of Halifax.