The botched sale of Royal Mail cost the taxpayer more than £1bn, according to MPs.
A business, innovation and skills select committee found the UK lost £1bn in profits following the sale of the 500-year-old institution.
The government underestimated the value of the company on the “poor quality advice” of bankers, according to the committee. These were the same bankers who were buying the under-valued shares.
Adrian Bailey, Labour chairman of the business select committee, said: “We believe that fear of failure and poor quality advice led to a significant underestimate of the demand for Royal Mail shares.”
He added: “The Government cannot blithely dismiss as ‘froth’, our committee’s concern that the low issue price of this prime public asset has cost the taxpayer around a billion pounds.”
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