Policy Exchange recommends to give away £34bn RBS and Lloyds Bank Shares to Taxpayers
According to reports of Policy Exchange, some £34bn of the Government's £48bn holding in Lloyds Banking Group and Royal Bank of Scotland should be given to 48 million Britons. The chancellor's think tank has claimed that the Coalition should distribute shares in state-owned banks to taxpayers ahead of the next general election.
This would lead the policymakers to strengthen the banks and allow them to compete on a fully commercial basis. The radical plan will hand 55% of RBS's and 30% of Llyod's share to the public for free. It means that every British resident above 18 yrs with a National Insurance number would get up to £1,650 worth of shares.
However, according to Sunday Times, George Osborne is looking forward to an early sale of shares in Llyod's Banking group. This could raise up to $17 billion. The chancellor is expected to use his Mansion House speech on
19 June to announce the sale of state's 39% stake.
The Chancellor is more likely to offer discounted shares, instead of giving the shares for free as recommended by the Policy Exchange reports. The report called to offer shares to voters instead of selling to them.
The Parliamentary Commission on Banking Standards is also finalizing its report on banking reform.