Lloyds share price falls as UK government sells another £1bn shares taking its stake below 10 per cent

Jessica Morris
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The government has recouped £16bn (Source: Getty)

The UK government has sold another £1bn Lloyds shares, amounting to a one per cent stake in the bank.

The latest sale whittles the taxpayer's stake down to below 10 per cent, allowing the government to recoup £16bn.

"It’s fantastic news that we’ve sold more shares in Lloyds Bank, taking the total recovered to £16bn," chancellor George Osborne said.

"Today’s announcement means we now own less than 10 per cent of Lloyds Bank - a significant milestone in our plan to return the bank to the private sector, and get taxpayers' money back."

The government was forced to throw Lloyds a £20bn lifeline during the global financial crisis, leaving it with a 41 per cent stake.

Shares in Lloyds were trading down 2.4 per cent at 72.21p per share this morning.

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