Ministers and bankers to face grilling over Royal Mail

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Ministers and bankers responsible for the sale of the Royal Mail will face a parliamentary committee hearing on Tuesday over allegations that the service was sold off “on the cheap” last October.

Vince Cable, the Business Secretary, will make his third appearance to defend the controversial sale, alongside Michael Fallon, Minister for Business.

Others facing the committee include William Rucker – chief executive of Lazard, the firm that advised the government on the flotation – and Martin Donnelly, Permanent Secretary for the Department for Business, Innovation and Skills.

Since the government sold off the majority of its stake in the firm – which had been state-owned for 500 years – its 330p share price has increased by as much as 87pc, giving investors a quick profit.

This has prompted allegations from trade unions and Labour that the deal was botched, bolstered by a National Audit Office report earlier this month which said that taxpayers had been short changed by more than £750m over the Royal Mail sale.