A David Cameron government could sell slabs of shares in nationalised banks to ordinary investors, in an echo of the “Tell Sid” British Gas privatisations of the 1980s when Margaret Thatcher tripled the number of UK shareholders.

George Osborne, shadow chancellor, is looking at selling a tranche of shares in RBS and Lloyds Banking Group to retail investors as he eyes a possibly lucrative privatisation programme for an incoming Tory government. Mr Osborne’s team is examining options for disposing of the government stakes in the two banks.