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NEWS CLIPS

Bank bail-out: rewards for some

Sculpture of Lloyds Black Horse outside Leeds Branch. Profits look a racing cert for those able to invest.

Sculpture of Lloyds Black Horse outside Leeds Branch. Profits look a racing cert for those able to invest.

The Tories announced plans yesterday to reward some taxpayers for the public bail-out of Lloyds Bank — those with enough spare cash to buy shares at knock down prices.

The Tory government intends to sell at least £2 billion worth of shares to the public next spring.

And small investors can make 20 per cent profit in the first year of share ownership, thanks to ‘incentives’.

The first is a discount of 5 per cent on the market price of shares and the second is one bonus share awarded for every 10 purchased and held for a year — that’s essentially 10 per cent extra free.

So good news for those with spare cash to invest but not so good for those living on tight incomes. Third Way also questions the principal of selling back to shareholders when we should be increasing public ownership and control of finance.

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