The UK government is actively considering options to sell its share in Lloyds the UK Chancellor of the Exchequer George Osborne announced in his annual Mansion House speech.

Lloyds, the fourth largest bank in the UK by assets, is currently 39% owned by the taxpayer.

The speech made by the chancellor goes hand in hand with findings by the Banking Standards Commission on 19 June that also concluded Lloyds should return fully to the private sector.

Lloyds is planning to float 631 branches under the TSB brand after a branch deal with the Co-op Bank fell through in April.

Shadow chancellor, Ed Balls, said: "On Lloyds, we are clear that the taxpayer needs to get its money back but following the collapse of branch sales to the Co-op Bank it’s vital that we have a new strategy from the government to boost competition on the high street."

Osborne said he has no pre-fixed timescale or method of disposal for Lloyds’ re-privatisation.

In the same speech, Osborne stated that RBS, which is owned 81% by the taxpayer, would be considered, as to whether he could ‘split the good bits from the bad.’ He said that; "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."

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