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Government to sell off final stake in Royal Mail amid £4.5bn of 'extra' cuts

The government will sell off its remaining 30 per cent stake in Royal Mail as part of a £4.5bn package of extra budget cuts, it was announced today.

Chancellor George Osborne revealed the sell-off would raise £1.5 billion, on top of a £3bn package of other cuts and efficiencies including land sales and cutbacks in administration costs.

The extra savings will add to the £13bn of cuts already being made by Whitehall departments.

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Osborne: Selling Royal Mail shares 'right thing to do'

The government is to sell off its remaining 30 per cent stake in Royal Mail, Chancellor George Osborne has announced as he set out proposals for cutting departmental spending by £3 billion this year.

The stake is currently said to be worth around £1.5 billion.

The government to sell off remaining 30% Royal Mail stake Credit: Chris Radburn/PA Wire

Speaking during a debate in the House of Commons, he told MPs it was the "right thing to do".

I am today announcing that the Government will begin selling the remaining 30% shareholding we have in the Royal Mail.

It is the right thing to do for the Royal Mail, the businesses and families who depend on it - and crucially for the taxpayer.

– George Osborne, Chancellor

Initial reports suggest none of the shares being offered up for sale will be reserved for employees, who received 10 per cent during the last sell-off.

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