View more on these topics

Osborne set to reveal Lloyds sell-off plans

George-Osborne-Serious-500x320.jpg
Chancellor George Osborne

Chancellor George Osborne is set to announce plans to begin selling off the Government’s shares in Lloyds Banking Group.

Osborne will reportedly use his Mansion House speech on 19 June to reveal how much of the Government’s 39 per cent stake in the bank will be sold off. Some reports suggest the Treasury is considering a sale of 10 per cent of its stake before the end of the year. Estimates say the total stake is worth around £17bn.

Under the plans, the public will be offered discounted Lloyds shares at the same price available to institutional investors such as pension funds and fund managers. The Government plans to offer incentives for investors to hold on to the shares for the longer-term.

Osborne is also expected to signal a share sell-off in RBS, although this may follow the Lloyds share sale.

Thinktank Policy Exchange published a report last week calling for Lloyds and RBS shares to be offered to voters at no initial cost, with voters then paying a fee on any future gains when they sell the shares. The thinktank estimates a mass share distribution would mean taxpayers receiving shares in the banks worth between £1,100 and £1,650.

The Treasury, Lloyds and RBS declined to comment.

Thameside Wealth director Tom Kean says: “To go for a sale now is a risky gamble by the Treasury. If the Government gets the timing wrong on this, it could be left with a loss.”

Recommended

Simon Collins: Are all your staff up to the job?

The scenario: You are the compliance oversight CF10 officer of a busy independent investment intermediary. It is nearly six months in to the RDR and after reviewing your independent status and adviser charging regime, things appear to be going well.  You prioritised those two key aspects of the RDR as all of your advisers had […]

1

FCA fines investment firm £121k over client money failures

The Financial Conduct Authority has fined a stockbroking and asset management firm £120,900 for failing to protect client money and client assets. Xcap Securities, a retail investment and capital markets business, is the first firm to be fined over client money failures under a new penalty regime brought in by the FCA. The new penalty […]

4

Times investigation exposes Lloyds PPI complaints failures

An investigation by The Times into Lloyds Banking Group has found contractors employed at its largest PPI complaint handling unit were taught how to “play the system” to the detriment of clients. An undercover Times reporter went through the recruitment and training process to work as a PPI complaint handler at Royal Mint Court in […]

Ex-Lighthouse chief paid £260k after Aim delist failure

Lighthouse Group paid former executive chairman David Hickey £260,000 upon his resignation from the firm following its failed attempt to delist from the Aim market. Lighthouse proposed to delist from the market in July last year. However, 53 per cent of shareholders voted against the proposal. It required 75 per cent of votes in order […]

Pensions - thumbnail

Auto-enrolment — don’t leave it too late…

With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment