Sunday 8 January 2017 7:36 pm

Lloyds share sell off set to gain pace tomorrow

The government is set to ditch another £500m worth of its stake in Lloyds, with the next sale of its shares expected to be announced as early as tomorrow.

In one of his earliest announcements as chancellor, Philip Hammond revealed last October that the government was now prepared to sell its remaining stake in the lender. It has been gradually shedding its shares since then.

The Sunday Times reported the next sale, which will bring the taxpayer's holding in the bank to below six per cent, will be revealed this week, and City A.M. understands it could be as early as tomorrow.

Read more: Lloyds Bank snaps up credit card firm MBNA for £1.9bn

The timetable means the government will likely be entirely rid of its holding in Lloyds by this spring. By contrast, fellow rescued bank Royal Bank of Scotland is still 73 per cent state owned. 

UKFI, the organisation charged with managing the portfolio of assets the government picked up during the fallout of the financial crisis, declined to comment.