The chances of the government selling its stakes in Royal Bank of Scotland and Lloyds within this parliament have faded to virtually nil, according to senior figures closely connected with the process.
George Osborne, chancellor, had until recently hoped to begin the sale next year, drawing a line under the banking crisis and providing money for possible tax cuts or spending increases ahead of the planned 2015 election. Nick Clegg, Lib Dem leader, has also proposed giving every British voter shares in the state-owned banks in an effort to create a “people’s banking system”.
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