Member Article

Election 2015: Tories pledge Lloyds Bank privatisation

David Cameron has pledged a privatisation of Lloyds Bank if the Conservatives win May’s General Election.

The policy, which will involve selling off the government’s share in the bank, is reminiscent of Margaret Thatcher’s ‘Tell Sid’ campaign wherein the party sold British Gas shares in the 1980s.

During the banking crash of 2008, Labour put £20bn of taxpayers’ money into acquiring a 43% stake in the bank. The coalition has already disposed of off £9bn of shares on the money markets, leaving a Government shareholding of 22%.

Prime Minister David Cameron, said: “The £20bn bail-out of Lloyds bank by the last Labour government became a symbol of the crisis that engulfed the British economy under Labour.

“After the public bailed it out, people feared they wouldn’t see their money returned. Today they are.

“Today’s announcement marks another step in the long journey we have been making repairing our banks, turning our economy around and reducing our national debt, only made possible by our long-term economic plan.

“That’s why it is so important that we don’t put all that progress at risk, but instead build on what we’ve done so we can deliver a brighter, more secure future for our country.”

According to Sky News, following the sell off:

• The minimum investment will be £250
• The maximum purchase will be £10,000
• There will be a loyalty bonus for people who hold on to their shares for a year

The sale will see £9bn of shares released for sale, of those £4bn will go at a discounted price to small investors with a built in “loyalty bonus” resulting in one additional free share for every 10 shares if they hold on to their shares for a year.

Shadow Chancellor Mr Balls told Sky News’ Murnaghan programme: “I want Lloyds and RBS back in the private sector to get our money back.”

“Let’s make sure the taxpayer does not get ripped off again,” he said, reminiscing about the sale of Royal Mail.

Mr Balls said: “Of course the public should be buying the shares but David Cameron promised this before the last election.

“He has announced it seven times. It has taken him a lot longer than he thought.

“I want to make sure we maximise the long-term benefit for the taxpayer. I want to make sure we get the money in.

“If people buy the shares the money is coming to the Treasury.”

This was posted in Bdaily's Members' News section by Ellen Forster .