Chancellor tells ITV News the sale of £3.21bn worth of Lloyds shares will not necessarily trickle down to struggling households.
The Treasury has started the process of one of the most anticipated business deals in years, but will the taxpayer get their money back?
In a letter seen by ITV News, a senior Cabinet minister has warned hospital trusts about using schemes to avoid paying tax.
Taxpayers still have a significant stake in the bank of more than 30 per cent, but Osborne added that the £3.21 billion deal is an "important step" in his spending plans.
Confirm have sold 6% of Lloyds shares at 75p. Profit for taxpayer & important step in plan to get their money back and repair economy
The sale of a six per cent share stake in Lloyds Banking Group has produced a cash profit of £61 million for the Government, and a 'fiscal profit', that will help the books, of £586 million.
However, taxpayers still have a significant stake in the bank of more than 30 per cent.
The Government has sold a six per cent stake in Lloyds Banking Group for £3.21 billion at a share price of 75p.
This morning the British taxpayer will learn what investors are prepared to pay for Lloyds banking group.
The figure should be around £3.3bn.
The Chancellor George Osborne has said the sell-off of Lloyds Banking Group "is another step of repairing what went so badly wrong in the British economy."
He added: 'I've been absolutely determined to get that money back for taxpayers and pay down debt, that is what we've started to do today."
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.