UK government extends Lloyds selloff plan by up to six months

In a statement on Friday, UK Financial Investments Ltd – which is managing the sale on the government’s behalf – said the plan, which was due to end this month, will finish no later than 30 June 2016.

The UK Treasury is currently in the process of selling off shares in Lloyds, in which it owns a 9.2% stake.

In October, the government outlined plans to sell at least £2bn in Lloyds stock to the public in the spring of next year as part of a retail offer.

Since the start of the trading plan in December last year, around 11.2bn Lloyds shares have been sold at an average price of over 81p per share.

Chancellor George Osborne said: "The trading plan has been a huge success, with over £9bn raised for the taxpayer so far. This means we have now recovered over £16bn in total, and we now own 9.2% of the bank.

"As part of my plan to fully return Lloyds to the private sector, reduce public debt and build a stronger and safer financial system, Lloyds shares will also be offered to retail investors in spring 2016. This will allow hardworking people to buy a stake in our economy and help to build a share owning democracy.”