The size of the stake owned by British taxpayers in Lloyds has fallen below 22 percent, according to a regulatory filing. The UK took a 40 percent stake in Lloyds when it was rescued in 2009.

"We have raised a further 500 million pounds through Lloyds share sales," Osborne said on Twitter. "Nine billion pounds now recovered and being used to pay down our national debt."

(Reporting by Guy Faulconbridge; editing by John Stonestreet)