Chancellor prepared to sell Lloyds shares

<p>Lloyds shares could be sold by the government.</p>

Chancellor of the exchequer George Osborne has revealed he is considering selling shares in Lloyds and the Royal Bank of Scotland (RBS).

The Treasury bailed out both banks in the middle of the recession, with RBS 81 per cent owned by the taxpayer, while the government has a 39 per cent stake in Lloyds.

In his Mansion House address, the chancellor announced he is considering splitting up RBS before embarking on the sale of the shares.

Mr Osborne said he would "only sell our stake in RBS when we feel the bank is fully able to support our economy and when we get good value for you, the taxpayer".

Responding, shadow chancellor Ed Balls stated the taxpayer ought to get its money back from the sale of shares in Lloyds.

On the back of the announcement by the chancellor, the share price of RBS is down by more than five per cent. At 16:09 BST, stocks are trading for 302.80, down 16.70 for the day.

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