- 10 updates
The Treasury is actively considering options to return partially state-owned Lloyds bank to the private sector, the Chancellor has announced.
George Osborne offered no timetable for share sales but said "investor interest is growing".
He also said that the sale of the Government's stake in RBS remains "some way off".
ITV News' Business Editor Laura Kuenssberg reports.
The outgoing Governor of the Bank of England has welcomed the Chancellor's announcement that steps are being considered to return part state-owned Lloyds bank to the private sector.
Speaking at Lord Mayor's banquet, Sir Mervyn King said: "Britain needs a thriving banking system to serve households and businesses and Lloyds and RBS will be able to play that role to the full only when they are back in the private sector".
Addressing George Osborne, he said: "I welcome your announcement that Lloyds Banking Group will be returned to private hands soon and I very much support your plans for a full review of the future structure of RBS".
Responding to the Chancellor's Mansion House speech, shadow chancellor Ed Balls said:
- The Government bought 39% of Lloyds shares and 81% of RBS in a multi-million pound bailout at the height of the financial crisis in 2008
- The Government believes a sale price of 61.2p would allow it to recoup the #20 billion it ploughed into the bank.
- Shares today closed down 0.42p at 61.76p.
The Chancellor George Osborne said Britain had "left intensive care" and was now "moving from rescue to recovery."
The Chancellor George Osborne has said that the sale of the Government's stake in the Royal Bank of Scotland remains "some way off." Speaking during his annual Mansion House address, he said:
This is what the Chancellor said about splitting up RBS in February.
Chancellor George Osborne has announced that the Government is taking the first steps to return Lloyds to the private sector and now actively considering options for share sales.
Speaking during his annual Mansion House address, he said:
Outgoing Bank of England governor Sir Mervyn King is being made a peer. Prime Minister David Cameron nominated the banking chief for a life peerage for his significant contribution to public service. The announcement comes as Sir Mervyn gives his final Mansion House speech tonight.
In his annual Mansion House address, Chancellor George Osborne will outline the next stage of the Government’s plan for the recovery of the UK's banking system.
As part of this, he will set out the following three key objectives for partly-state owned banks:
- 1. Maximize their ability to support the British economy.
- 2. Get the best value for money for the taxpayer.
- 3. Do what we can to return them to private ownership.
Mr Osborne will say: “Nothing better signals Britain’s move from rescue to recovery than the fact that we can start to plan for our exit from government share ownership of our biggest banks".
Latest ITV News reports
George Osborne is tonight announcing that the government will consider splitting up RBS, the solution that he has advocated for years.