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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Andy Burnham's full speech on attack: "Manchester is waking up to the most difficult of dawns"

"We are grieving today, but we are strong."

Following Monday night's terror attack on an Ariana Grande concert at the Manchester Arena, newly elected mayor of the city Andy Burnham, gave a speech outside Manchester Town Hall on Tuesday morning, the full text of which is below: 

After our darkest of nights, Manchester is today waking up to the most difficult of dawns. 

It’s hard to believe what has happened here in the last few hours and to put into words the shock, anger and hurt that we feel today.

These were children, young people and their families that those responsible chose to terrorise and kill.

This was an evil act. Our first thoughts are with the families of those killed and injured. And we will do whatever we can to support them.

We are grieving today, but we are strong. Today it will be business as usual as far as possible in our great city.

I want to thank the hundreds of police, fire and ambulance staff who worked throughout the night in the most difficult circumstances imaginable.

We have had messages of support from cities around the country and across the world, and we want to thank them for that.

But lastly I wanted to thank the people of Manchester. Even in the minute after the attack, they opened their doors to strangers and drove them away from danger.

They gave the best possible immediate response to those who seek to divide us and it will be that spirit of Manchester that will prevail and hold us together.

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