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.
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?