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It was reported that George Osborne, shadow chancellor, was planning to sell off tranches of shares in RBS and Lloyds Banking Group in an effort to off-load the government's stakes in the troubled banks if they were to form the next government.

Under the proposition, the stakes will be sold off over a number of years to members of the general public.

An aide to Mr Osborne was reported to have said that privatisation of the stricken institutions was one of the options that the Conservatives were looking at, adding that no decision had yet been made.

However, advisers have dismissed the idea, saying they did not see this as an attractive investment option for their clients.

They also expressed doubt about the plan, referring to multiple factors that could scupper the proposals.  

Ian Lowes, managing director of Newcastle-based Lowes Financial Management, said that he could not see the measures immediately being brought into force.

He said: "I am not sure to what extent this is just a suggestion at the moment. And it is some time off unless we have a quick election and the Labour Party just gives up.

"I have no doubt it would only proceed with this course of action if the public were interested. I do not think we would advise our clients to invest. I am not particularly excited by the proposition."

However, Mr Lowes said the plan was not put into place for many years, the market may have changed in favour of the banks by that time.

Mr Lowes added: "In short, it is just a suggestion at this moment, and they do not have any concrete plans. If it does happen, it probably will not be for a few years and then it might be a good investment."

Martin Bamford, managing director of Surrey-based advisers Informed Choice, said there had been some recent client interest in bank shares but said the proposed privatisation would still be a tough sell.

He said: “It would depend on factors including timing and general conditions when it started to happen. The exit strategy has been the issue for whatever government in power. It will be a tough sell but certainly not impossible."