Investments  

Financial sector reform leads to £50bn return

The government has received nearly £50bn from its holdings in banks thanks to having de-risked the financial sector, the Autumn Statement said.

According to the statement the government raised £7.5bn from selling shares in Lloyds Banking Group since 2010 - lowering its stake in the bank from 43 per cent in 2008 to 25 per cent.

The statement said: “The government has successfully reduced taxpayers’ exposure to the financial sector by reducing contingent liabilities through the closure of guarantee schemes and successfully disposing of government-owned financial assets.

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“Having de-risked the financial sector and introduced a more robust regulatory regime, the government is seeing an uplift in value for the government-owned banks and financial assets aligned with the uplift in the economy.”

The government has also received more than £19bn in replayments from Northern Rock Asset Management and Bradford & Bingley.

While £9.5bn has been received from Lloyds Banking Group and Royal Bank of Scotland relating to government support and participation in government intervention schemes.