Give public bailed-out banks shares says Nick Clegg

Proposals to give the public shares in part-nationalised banks RBS and Lloyds have been backed by Nick Clegg.

The idea is that individual taxpayers would benefit from any long-term gains when shares in the banks are sold.

The deputy prime minister said it was important British people were not overlooked after their money was used to keep the banking system alive.

The Treasury said all options would be considered but some experts have warned the scheme would be difficult to run.
'Life-support machine'

Speaking on a trip to Brazil, Mr Clegg said: "Psychologically it is immensely important that the British people feel they have not just been overlooked and ignored.

"Their money has been used to the tune of billions to keep the British banking system on a life-support machine and they have absolutely no say at all in what happens when normality is restored.

"I think, in a sense, as a society we are condemned to take an interest in our banking system."

He added: "You are giving the Treasury an assurance that they will break even but you are not giving the Treasury the freedom to grab the windfall if there is one.

"This is something I have discussed a lot with [Business Secretary] Vince [Cable]. Vince and I feel it is something that we want officials to look at."

Liberal Democrat leader Mr Clegg admitted there remained "a huge amount of detail still to be worked on"

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