Lloyds TSB tried to minimise the likely impact of state ownership by casting doubt on the government’s ability to exert significant influence over the bank’s management.

As it outlined plans on Monday for far higher cost-cutting from its takeover of HBOS, Sir Victor Blank, Lloyds chairman, made clear its determination to break free of government as soon as possible by repaying all the two banks’ £4bn preference shares next year – a move which would allow it to resume paying dividends.