New Times,
New Thinking.

  1. Politics
4 June 2015updated 26 Sep 2015 6:46am

Remaining Royal Mail shares to be sold off

Selling the family silver.

By New Statesman

The Chancellor George Osborne has announced that the government is planning to sell its remaining 30% stake in the Royal Mail. Osborne said that the government’s stake, which is worth £1.5 billion, would be sold when ministers could be sure they would get value for money.

“It is the right thing to do for the Royal Mail, the businesses and families who depend on it – and crucially for the taxpayer,” the Chancellor said in the House of Commons during a debate about the Queen’s Speech.

“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.

“It’s a double win for the taxpayer, for we on this side never forget that it is not our money or the government’s money; it’s the money people work for and pay in taxes and entrust in us to spend wisely.”

The last government sold off 70% of shares in Royal Mail in October 2013. Shares in Royal Mail were initially floated at 330p per share, and are now trading at over 500p. But share prices fell almost 20pc after Osborne’s announcement that he would be “selling the family silver,” as Harold MacMillian once likened privitisation to. 

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
An energy skills boost can power UK growth
Homes for all: how can Labour shape the future of UK housing?
The UK’s skills shortfall is undermining growth