Ruth Mitchell

Clegg calls for public to be given shares in part national banks

Nick Clegg has backed proposals to give the public shares in part-nationalised banks like RBS, according to the BBC.

The deputy prime minister has supported the idea due to his belief that the British people should not be overlooked after their money kept banks afloat.

The idea was reported to have been developed by City firm Portman Capital, and would give 45 million people on the electoral roll free shares in banks bailed out during the crisis. To cover the cost of the investment, the shares would only be worth what the government initially paid for them so it can cover its investment. Each share bundles estimated worth would be £770.

Mr Clegg believes the measures will allow the Treasury to break even but this will prevent them from grabbing a windfall if there is one.

However, some believe that the scheme would be difficult to run, and it has been asserted by the Guardian that the Conservatives are likely to want the money to be used to reduce the deficit, provide tax breaks or restore public spending.

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