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.