CHANCELLOR George Osborne is to outline plans for privatising the Royal Bank of Scotland (RBS), reports suggest.

The proposals are expected to be revealed in next week's Mansion house speech as the UK Government looks to press ahead with the sale of stakes in RBS and Lloyds Banking Group.

Both banks were bailed out by the Government following the 2008 financial crisis.

The Treasury has already committed to selling some of its Lloyds shares within the next 12 months, while sources are reported as saying that the Mansion House speech would be "an obvious platform" to outline future plans for the Government's 80 per cent stake in RBS.

The Treasury refused to comment on the content of the speech, but Mr Osborne has recently said that he wants to "get the government out of the business of owning great chunks of our banking system".

It is understood the Government could begin selling towards the end of the year, allowing time for RBS to complete a settlement with US regulators for mis-selling mortgage securities.

RBS declined to comment.

XREF Business, back page, page 24. Lloyds story