Government announces plans to sell remainder of Royal Mail
George Osborne has announced plans to sell off the government’s remaining stake in Royal Mail, providing they get “value for money”.
The chancellor said he would sell off the 30 per cent holding, which is worth around £1.5 billion, as he set out proposals to cut departmental spending.
He told MPs in the Commons, “I am today announcing that the government will begin selling the remaining 30 per cent shareholding we have in the Royal Mail. It is the right thing to do for the Royal Mail, the businesses and families who depend on it – and crucially for the taxpayer.
“We will only sell our stake when we can be sure we’re getting value for money but let’s be clear: holding over £1 billion of Royal Mail shares in public hands is not a sensible use of taxpayers’ money.
“By selling it, we help that important national business to prosper and invest in the future while we use the money we get to pay down the national debt and pay less interest on that debt as a result.”
.jpg)
“Shabby” announcement
But Labour opposed the plan, accusing Mr Osborne of “ripping up” his long term economic plan.
Labour Shadow Chancellor Chris Leslie said there is “panic in the Treasury” and questioned why the cuts had been unveiled in a “shabby” way rather than in the March budget.
Shadow Business Secretary Chuka Umunna also opposed the plans claiming the Chancellor has “short-changed the taxpayer”.
Having royally short changed the taxpayer in the initial privatisation of Royal Mail, the Chancellor tells us he is selling off the rest
— Chuka Umunna (@ChukaUmunna) June 4, 2015
Efficiencies and savings
However Mr Osborne claims that the Conservatives are doing what the government set out to do.
He said, “We set out two weeks ago that we were going to find further efficiencies and savings in Government. That is what we deliver today.”
Mr Osborne also announced £3bn in efficient savings in the current finical year and savings of £13bn earmarked for 2015/2016.
The Government has appointed Rothschild to advise the Department for Business on the sale of the Royal Mail stake.
Treasury aides have not said whether the new Royal Mail offering would be available to the public or restricted to institutional investors.