Govt puts Lloyds sell-off plans on hold

The Government has put its plans for a pre-election sell-off of Lloyds Banking Group Shares on hold.

The Government has decided that stock market volatility at the expected time of the sale would create unacceptable levels of risks for ministers taking part in the mass retail offering. 

Though no set date had been set for the offering of shares, many had expected the Government to sell off its remaining stake as soon as September.

This would place the sell-off of shares only a few months before the general election, at the same time as Bank of England stress tests and in the same month as the referendum on Scottish independence. 

Due to these reasons, and increasing global geopolitical tensions, preparations for an Autumn sale of shares have been put on hold. 

A Treasury spokesman says: “The Chancellor set out the government’s approach to the state owned banks in his Mansion House speech last year: we want to maximise support for the British economy, get the best value for money for the taxpayer and return the state owned banks to private ownership.

“Any decisions on share sales will be determined by value for money and market conditions.”