Taxpayer stake in Lloyds Banking Group cut by 1%

The government today shaved the taxpayer stake in Lloyds Banking Group by 1 per cent to less than 8 per cent following a share sale '“ having been 43 per cent at its peak after the lender's £20 billion state bailout in the financial crash.

Lloyds sells another 1% of taxpayer stake. Picture: PA

It means more than £17 billion has now been returned to government coffers since the 2008 bailout after Lloyds took over struggling rival HBOS.

Chancellor Philip Hammond said: “Selling our shares in Lloyds Banking Group and making sure that we get back all the cash taxpayers injected into it during the financial crisis is one of my top priorities as Chancellor.” All proceeds from the sales are used to reduce the UK’s national debt.

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The government has progressively sold down its Lloyds holding, in October ditching plans for a share sale to the public amid stock market volatility, and opting instead to offload the holding to institutional investors.

A Lloyds spokesman said: “Today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back.

“This reflects the hard work undertaken over the last five years to transform the group into a simple, low-risk and customer-focused bank that is committed to helping Britain prosper.”