Deputy Prime Minister Nick Clegg has called on Chancellor George Osborne to gift shares in Royal Bank of Scotland (RBS.L) and Lloyds Banking Group (LLOY.L) to the taxpayer.

Speaking during a visit to Brazil, the Liberal Democrat leader confirmed he had written to Osborne calling for a mass share-ownership scheme, where taxpayers could benefit financially from managing their own shares in the two banks.

The comment comes after a proposal that was drafted by Portman Capital Partners and Liberal Democrat MP for Bristol West Stephen Williams suggesting that three quarters of the publicly owned shares be distributed to registered voters.

If any allocation of shares were to be made, individuals would be expected to hold the shares until they reach a target price which would be the amount the government originally paid for the shares – 51p for RBS and 74p for Lloyds.

On reaching this target, individuals could sell the shares, but they would get nothing because the target amount would have to be returned to the government.

However, any additional rise in the share price would be returned to individuals, as profit should they sell in the future.

Speaking in March, when the original proposal was tabled, LibDem MP Stephen Williams said there was a real danger that the banks could forget the help they received from the taxpayer.

He explained, ‘There is a general feeling in this country that we need to get something positive in return for the bailout.

‘HM Treasury needs to recover the approximately £66 billion it spent bailing out the two banks. There is a general feeling in the country that we need to get something positive in return for the bail out.’