Lloyds Bank shares worth £2bn go on sale to the public

Chancellor George Osborne has announced the sale of £2 billion worth of shares in Lloyds Banking Group next spring.

The shares will be sold to individuals at a 5% discount to the market price with those applying for shares worth less than £1000 being prioritised to prevent wealthier investors buying them all.

Back in 2008, the Labour injected a total of £45.5 billion into RBS - taking a 79% stake in the bank - to prevent its collapse after the global crash.

The Government has been gradually selling shares off to institutional investors, but this marks the first chance for the general public to get involved.

Speaking on ITV's Good Morning Britain, Mr Osborne said: "We are selling Lloyds shares to members of the public, people watching this programme, small investors, people who are going to have a chance to get something back having put all that money in under the last Labour government."

The sell-off is backed by Bank of England director, Mark Carney, who advised a "phased return" to private ownership to promote financial stability earlier this year.

The Treasury has confirmed a nationwide TV and print campaign to provide further details ahead of the sale for those wishing to apply to buy shares.