So, if the Government’s investment in Lloyds Bank is worth between £22 and £25bn, depending on the exit strategy and market price, is the clever CEO of a Local Authority going to plan their 25% savings over the next 4 fiscal years in a Hockey Stick shape…sort of 3% 4% 5% 8%?
When it comes to year 4, will they be hoping that the contribution of Government Banking Share Sales will make so much of a difference that the Government will be claiming a better than anticipated recovery and thus ease off the planned cuts on Public Spending ahead of the forthcoming election?
If a Government in power wanted to counter an opposition party who might go into the next General Election with some form of “build the economy now that we are over the worst” theme, would the sale of Government Shares in Banks be a useful tool?
How likely is a scenario like this, therefore what are the canny planners going to do. Late October and early November, we will see, for sure.