Thursday 12th September, 2013

The Business Secretary, Vince Cable has announced today that The Royal Mail is to be sold with an initial public offering (IPO), being made soon. The Government confirmed 10% of shares will be given to the 150,000 Royal Mail workers. Analysts expect the sell-off will make up to £3bn.

The announcement came ahead of a meeting of Union officials to discuss the sell-off and their plans for a strike ballot, the outcome of which is expected on 3rd October.

Mr Cable said: "The Government is taking action to secure a healthy future for the company. These measures will help ensure the long-term sustainability of the six days a week, one price goes anywhere universal postal service.

Royal Mail chief executive Moya Greene said: "Our strategy is delivering a revitalised company, with a unique, UK, multi-use network through which we are proud to deliver the universal postal service for all UK citizens."

But shadow business secretary Chuka Umunna said: "Ministers are pushing ahead with this politically-motivated fire sale of Royal Mail to fill the hole left by George Osborne's failed plan."

"The government has not addressed the huge concerns which remain on the impact the Royal Mail sale will have on consumers, businesses and communities."