The Government has further reduced its stake in Lloyds Banking Group to just under three per cent.

The latest sale of shares means the Government has now recovered over £19.5 billion of the £20.3 billion of taxpayer's money poured into Lloyds during the 2008 banking crisis.

Economic Secretary to the Treasury, Simon Kirby, said: "Lloyds' recent annual results show that we are in a good position to reduce our shareholding further and expect to recover all of the money taxpayers injected into the bank during the financial crisis.

"A trading plan involves gradually selling shares in the market over time, in an orderly and measured way."

All proceeds from the sales are used to reduce the UK's national debt.

Lloyds has a major centre at Barnwood where it employs around 900 people.

Lloyds chief executive Antonio Horta-Osorio said he was pleased that Lloyds strong financial performance had kept the bank on track to return more money to taxpayers than was put in.