Sale of state stakes in banks may go on hold

Lloyds Banking Group and Royal Bank of Scotland could remain part-owned by the taxpayer for years to come after the stock market chaos caused by Brexit.

Picture: TSPL
Picture: TSPL

Analysts said Chancellor George Osborne will be forced to shelve a “Tell Sid” style offer of shares in Lloyds Banking Group after banking shares crashed into the red yesterday.

Osborne had hoped to launch a retail sale of 
£2 billion worth of shares in Lloyds as early as August if the UK had voted to remain in the EU.

But analysts said that was now unlikely after Lloyds shares plunged more than 20 per cent yesterday, and it will likely see the government miss its target to offload its remaining 9 per cent stake in the lender.

They said the same applied to the taxpayer’s remaining stake of more than 70 per cent in RBS.