The Government pressed ahead with "an unnecessary and botched fire sale of Royal Mail," the shadow trade minister said.
Ian Murray said as a result of this, taxpayers "have been short changed by hundreds of millions of pounds while the Government's 'priority' City investors made a killing at the public's expense."
Mr Murray said: "The cross-party committee's damning report reinforces the significant criticisms which have already been made by the National Audit Office and others.
"David Cameron's Government still has serious questions to answer."
More top news
A woman who had just arrived back at Manchester Airport after a holiday abroad was surprised with a flash mob - and a wedding proposal.
Former prime minister said he failed to predict chaos after toppling of dictator as he calls for UK to send in ground troops against Isis.
An investigation is underway into a series of malicious threats made to schools across the UK.