Taxpayer lost £230m on government's Lloyds stake sale

clock

The taxpayer lost £230m on the government's disposal of part of its stake in Lloyds Banking Group, according to the National Audit Office (NAO), despite claims the sale was made at a profit.

NAO analysis found the government sale of a 6% stake in Lloyds resulted in a loss for the UK of over £200m, once state funding costs were taken into account. That is despite chancellor George Osborne (pictured) claiming the 75p price meant a "profit for taxpayers" at the time of the 17 September sale. The cost of the debt incurred by the state to fund Lloyds' £20bn bailout in 2008 meant an overall loss for the taxpayer, despite the 75p price being above the nominal 73.6p 'break-even' level, the NAO said. Nonetheless, the NAO added the cutting of the government's stake in Lloyds from 39% ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Could investment managers be replaced by AI? Is it time to become a plumber?

Could investment managers be replaced by AI? Is it time to become a plumber?

Asking AI the important investment questions

Paul Wood
clock 21 April 2026 • 4 min read
Adapting portfolios for a more fragile world

Adapting portfolios for a more fragile world

'Europe remains especially exposed given its reliance on imported energy'

Jeremy Ocansey
clock 20 April 2026 • 3 min read
Vanguard to launch first-time investor service through targeted support

Vanguard to launch first-time investor service through targeted support

Received FCA permission

Jen Frost
clock 20 April 2026 • 2 min read