Gregory Campbell – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Gregory Campbell on 2015-10-28.

To ask Mr Chancellor of the Exchequer, if he will hold discussions with Lloyds Bank on that company prioritising the payment of dividends to encourage small shareholders to retain shares for the long term, in advance of further sales of the Government’s stake in that company.

Harriett Baldwin

The Government is planning to encourage long-term share ownership in Lloyds shares, offering the incentive of bonus shares for longer-term investors.

Lloyds Banking Group (LBG) remains a commercial company in which the Government is currently a shareholder. The Government’s shareholding is managed at arm’s length from HM Treasury by UK Financial Investments (UKFI). The Government does not involve itself in the commercial decisions of LBG. Whether or not to pay dividends to its shareholders is a commercial decision to be made by the bank’s independent management team.