Royal Mail Float Taxpayer Loss

Royal Mail Float Taxpayer Loss.

A committee of MP’s have said that Royal Mail shares may have been sold too cheaply costing the taxpayer around £1bn.

The report from the Business Innovation and Skills select committee said the government acted on bad advice over the Royal Mail stock floatation, however the Department of Business criticized the report saying that it contained “factual errors”.

In the report it says the Department for Business Innovation and Skills (BIS) underestimated Royal Mail shares and property owned by them was mispriced back in October when the company was floated.

It also went on to say that the BIS focused at the time on the negative aspects of the business, such as relations between the company and Communications Workers Union, which arranged strikes at the time.