Royal Mail sale ‘robbed’ taxpayer, says Communication Workers Union chief, Billy Hayes

A woman posts a letter in a Royal Mail post box (Getty)

The postal workers' union have demanded Vince Cable's resignation following claims that Royal Mail was valued at up to £10bn by a major bank - three times the price the Government sold it for this month.

JP Morgan reportedly advised the Business Secretary that the company was worth between £7.75bn and £9.95bn.

In the end shares were sold at £3.30, valuing the business at £3.3bn. The shares have since leapt in value to around £5.30, suggesting Royal Mail is currently worth more than £5bn.

Billy Hayes, the general secretary of the Communication Workers Union said the business had been undervalued, “robbing” taxpayers of billions of pounds.

He said: “In any other walk of life this would be a sacking offence and we call on Vince Cable to resign.”

The Department of Business said 21 different banks pitched to act over the sale of Royal Mail and the Government opted for the average suggested valuation.

Mr Cable dismissed claims that the company had been sold off too cheaply. He told Sky News: “We are not interested in the spivs and speculators, we are interested in serious long term investors.”