The sale of Lloyds Banking Group has begun, with 6 per cent of the bank being sold to investors as the government places shares for sale on the market.

The sale comes nearly five years after the government carried out a multi-billion bailout of the failing bank, with shares selling at 77.36p at the close of Monday markets.

Chief executive of Lloyds, Mr Horta-Osorio, said: “I am pleased that the Government has been able to begin the process of selling its stake, and giving taxpayers the opportunity to get their money back. I believe this reflects the hard work undertaken over the last two years to make Lloyds a safe and profitable bank that is focused on supporting the UK economy.”

Treasury spokesman said: “We want to get the best value for the taxpayer, maximise support for the economy and restore the banks to private ownership. The Government will only conclude a sale if these objectives are met”.

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