Five questions answered on the Royal Mail sale

is it “short changing” tax payers?

Shadow business secretary Chuka Umunna has said privatisation of the Royal Mail undervalues the company. We answer five questions on Umunna’s Royal Mail comments.

By how much does the Shadow Secretary think Royal Mail is being undervalued by?

Umunna said on BBC Radio 4's Today programme he thinks the privatisation of the Royal Mail undervalues the company by as much as £1bn, with City investors and hedge funds being the biggest beneficiaries of the sale.

He added that the sale is “short changing” tax payers.

When is the Royal Mail being sold?

Shares of Royal Mail will be sold to the public from 15 October. Up to 62 per cent of the business will be sold, with the rest remaining state-owned. A 10 per cent stake has been reserved for Royal Mail employees.

A £750 minimum purchase stake is required by members of the public and a £500 minimum purchase stake by employees.

What else has Ununna said?

He believes the £750 minimum purchase stake is too steep for the public.

"That is a lot of money for most people - it is out of reach for many. Most of the people benefiting from this will be the speculators and the hedge funds,” he told Radio 4.

Labour has said they will not renationalise the Royal Mail if the party got in power at the next election.

What is the current value of the Royal Mail shares?

Initially the government priced the shares at 260-330p, but it is thought they will be sold between 300-330p.

On Friday it was reported that demand for shares is outstripping supply.

What has the government said in regards to the Shadow Business Secretary’s comments?

The Department for Business said: "This is a commercial transaction and government is following normal commercial practice in setting and publicising the share price and delivering value for the taxpayer. The value of Royal Mail will depend on a number of factors, notably the company's on-going financial performance, its future prospects and the level of investor interest."

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Italian PM Matteo Renzi resigns after referendum No vote

Europe's right-wing populists cheered the result. 

Italy's centrist Prime Minister Matteo Renzi was forced to resign late on Sunday after he lost a referendum on constitutional change.

With most ballots counted, 60 per cent of Italians voted No to change, according to the BBC. The turn out was nearly 70 per cent. 

Voters were asked whether they backed a reform to Italy's complex political system, but right-wing populists have interpreted the referendum as a wider poll on the direction of the country.

Before the result, former Ukip leader Nigel Farage tweeted: "Hope the exit polls in Italy are right. This vote looks to me to be more about the Euro than constitutional change."

The leader of France's far-right Front National, Marine Le Pen, tweeted "bravo" to her Eurosceptic "friend" Matteo Salvini, a politician who campaigned for the No vote. She described the referendum result as a "thirst for liberty". 

In his resignation speech, Renzi told reporters he took responsibility for the outcome and added "good luck to us all". 

Since gaining office in 2014, Renzi has been a reformist politician. He introduced same-sex civil unions, made employment laws more flexible and abolished small taxes, and was known by some as "Europe's last Blairite".

However, his proposed constitutional reforms divided opinion even among liberals, because of the way they removed certain checks and balances and handed increased power to the government.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.