Govt lost £180m on Royal Mail privatisation - report

Carmen Reichman
clock

The government's privatisation of the Royal Mail was underpriced by £180m, a report commissioned by Business Secretary Vince Cable has suggested.

The report, written by former City minister Lord Myners, said shares could have been valued up to 30p more than the flotation price of 330p because of the high level of demand from banks and individuals, according to the BBC. It recommended future government share sales should be more transparent and the pricing set at a later stage. The report undercut previous suggestions by MPs that taxpayers lost up to £1bn in the 2013 privatisation. The probe was ordered by Cable after a National Audit Office review into the privatisation of Royal Mail said too much emphasis was put on rushing...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Why the bull market in precious metals may be starting again

Why the bull market in precious metals may be starting again

Silver and gold again – who would have thought it?

Paul Wood
clock 20 May 2026 • 2 min read
Omnis Investments launches passive range for Openwork and 2plan advisers

Omnis Investments launches passive range for Openwork and 2plan advisers

L&G to run day-to-day investment management

Patrick Brusnahan
clock 19 May 2026 • 2 min read
Digital bank Zopa gains targeted support authorisation

Digital bank Zopa gains targeted support authorisation

Receives regulatory approval for investment products

Sophia Panayi
clock 19 May 2026 • 1 min read