Govt advisers warn against Lloyds share sale

The Treasury is ignoring the concerns of UK Financial Investments over the planned retail sale of Lloyds shares, according to reports.

Yesterday the Government committed to launch a sale of Lloyds Banking Group shares to the public in the next 12 months.

But UKFI, the body set up to ensure the sales of bailed out banks are good value for money, is believed to be against the sale, City AM reports.

The shares could be sold at a discount, cutting profits from the deal by hundreds of millions of pounds.

A source close to UKFI says: “It would be much cleaner and neater if we didn’t have this retail offering.”

The Government took a 41 per cent stake in the bank following a £20bn cash injection during the financial crisis.

Following the sale of 1 per cent of shares, also announced yesterday, the Government now owns 19 per cent.

It began selling Lloyds shares in 2013 and has since raised more than £10.5bn.