Public should get shares in banks-Liberal Democrats

Liberal Democrats in Hinckley and Bosworth are backing plans that would see members of the public given shares in two banks, the Royal Bank of Scotland and Lloyds.

The government spent £65.8bn buying shares in the two banks. The government owns 83% of RBS and 41% of Lloyds.

The idea has been proposed by Liberal Democrat MP Stephen Williams.

Liberal Democrat parliamentary spokesman for Hinckley and Bosworth Michael Mullaney welcomed the proposal "This is a great idea. Billions of pounds of taxpayers money have been poured into the banks. It's only fair that the people get their money back."

At current prices, every adult would receive shares worth just under £1,000.

Each persons account would be set up with a default option to sell the shares over two or three years, although individuals could opt to hold the shares for longer.

Stephen Williams MP said "He said: "There is a danger that when the banks return to the private sector, it is business as usual. There is a general feeling in this country that we need to get something positive in return for the bail-out.

"This plan would recoup the public's investment and allow the taxpayer to get the benefit from any increased value in the banks."

A copy of the paper written by Stephen Williams MP can be read at www.centreforum.org/assets/pubs/getting-your-share-of-the-banks.pdf