Labour has called on the Government to ensure taxpayers get their money back when they sell off six per cent of Lloyds Banking Group.
Chris Leslie, Labour's shadow financial secretary to the Treasury, said:
“It’s vital that taxpayers get their money back and this must be the prime consideration in the sale of the government’s stakes in the banks.
"And as Labour has consistently said any profits from the sale should be used to repay the national debt."
The Government has insisted there is no timetable to sell off the rest of the stake in Lloyds, adding that the Royal Bank of Scotland sell off remains some way off.
The Chief Executive of Lloyds Banking Group has hailed the Government's decision to sell six per cent of its share in the company, insisting it reflects the "hard work" put in to make the bank profitable and safe again.
Antonio Horta-Osorio said: “I am pleased that the Government has been able to begin the process of selling its stake, and give taxpayers the opportunity to get their money back.
"I believe this reflects the hard work undertaken over the last two years to make Lloyds a safe and profitable bank that is focused on supporting the UK economy.”
UK Financial Investments, which manages the Government's stakes in Lloyds and Royal Bank of Scotland, said it has agreed not to sell any more shares in the bank for a period of 90 days.
The Treasury announced it will sell six per cent of part-nationalised Lloyds Banking Group, worth about £3.3 billion, via a placing to institutional investors, UKFI announced on Monday.
The sale will reduce the Government's stake in Lloyds to 32.7 percent.
The Treasury says it wants to get the "best value for the taxpayer" after it was revealed that the Government are planning to sell six per cent of Lloyds Banking Group.
A Treasury spokesperson said: “UK Financial Investments today advised the Chancellor it would be appropriate to begin the process to sell part of the Government’s shareholding in the Lloyds Banking Group.
"The Chancellor agrees with that advice and has authorised the process to begin.
"The Chancellor set out the Government’s objectives for its shareholdings in the banks at the Mansion House speech earlier this year.
"We want to get the best value for the taxpayer, maximise support for the economy and restore them to private ownership. The Government will only conclude a sale if these objectives are met.”
The Treasury has revealed plans to sell six per cent of Lloyds Banking Group.