UK government recoups all funds from Lloyds bailoutStaff Writer | April 22, 2017
The UK government will sell its remaining shares in Lloyds Banking Group in the coming months after recovering all of the £20.3bn spent to bail it out during the financial crisis.
Banking £20.4bn in sales
He said it "was right to step in with support during the financial crisis", when the Labour government injected £20.3bn for a 43% bail-out stake.
But he said the government should not own banks in the long term. "The right place for them is in the private sector and I'm pleased to be able to say we are approaching the point at which we will sell our final shares in Lloyds Bank."
Following two accelerated share sales to institutional investors in 2013, £12.6bn of shares have since been drip-fed into the market, culminating with several sales in 2017.
Last May, the government said it planned a retail sale of its 9.2% shareholding, fully returning the shares to the private sector between 2016 and 2017 but in an October u-turn, Hammond announced the government would only make shares available to institutions rather than retail investors.
In total, the government has also received dividend payments totalling £0.4bn from Lloyds. ■