Final Royal Mail Sale A 'Disgrace' Says Union

The Government has come under fire over the sale of its last stake in Royal Mail, with the postal workers union branding the move a "disgrace".

The final holding was disposed of overnight - with 13% of the company achieving £591m for the taxpayer.

Chancellor George Osborne confirmed the other 1% the Government had left had been gifted to Royal Mail staff for doing a "great job" in helping turn the company's fortunes around.

It took their total stake to 12%.

The latest sale meant the Government raised a total of £3.3bn from the public's stake in Royal Mail - a process that proved controversial on value and ownership terms from the start.

Ministers faced stiff criticism in 2013 when the flotation - aimed at bringing down the national debt - started and the share price was set at 330p.

It soared by nearly 90% on its stock market debt, prompting anger that it had been under-valued.

A committee of MPs put a figure of almost £1bn on it .

The final sale price - at 455p-per-share - while higher than that during the initial public offering - was significantly down on the 500p achieved during the penultimate sale in June .

Mr Osborne said today: "This is a milestone moment in the long and proud history of the Royal Mail, when we secure its long-term future.

"By fully leaving state ownership we have a win all round - for customers, the workforce and the taxpayer.

"And every penny will be used to pay down our national debt as we continue to bring our public finances under control."

However, the general secretary of the Communication Workers Union, Dave Ward, said: "This fire sale nails the lie that the Tories stand up for the interests of ordinary people.

"By their actions today they have made it abundantly clear that they are only interested in privatisation dogma and making the rich richer - even when their actions place public services at risk.

"The remaining Government share in this profitable company should have been used to safeguard the public's voice in Royal Mail and ensure the continuation of daily deliveries to every address in the country."

Royal Mail insisted it remained "committed" to the Universal Service Obligation and to "delivering for all 29 million homes and businesses in the UK."