Question to the HM Treasury:

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.

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.