Cameron and Miliband trade barbs over Royal Mail sell-off

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DAVID CAMERON and Ed Miliband clashed today over the Royal Mail sell-off during a rowdy session of Prime Minister’s Questions.

Cameron insisted the taxpayer had benefitted from the £2bn sale, despite yesterday's scathing report from the National Audit Office, which said undervaluing the share sale had cost the taxpayer £750m in a single day. Shares were originally sold at 330p but are today trading at 563p.

Miliband told Cameron he had gone "as red as a post box" because he knew he had lost millions of pounds for the taxpayer, reports the Evening Standard.

He accused the PM of selling a "national asset at a knock down price" and added: "It is not so much the Wolf of Wall Street, but the Dunce of Downing Street."

The Labour leader also pointed out that one third of shares were sold to just 16 City investors, with a "gentleman’s agreement" that it would be a long-term investment. But within weeks almost half had been sold off. "It was mate's rates for his friends in the City," said Miliband.

Cameron hit back, taking a swipe at the Labour leader and shadow chancellor Ed Balls for their role in the sale of British gold reserves during the last Labour government. "I will take a lecture from almost anyone in the country on selling the Royal Mail, but not from the two Muppets who advised on the sale of gold," he said.

The Prime Minister also pointed out that when Labour was in power the Royal Mail lost £500m. "It's now in private hands making profits, paying taxes, and it's working hard for our country," he said.

However, Cameron was quickly disproved when he tried to claim that the privatisation of the Royal Mail was in Labour's 2010 manifesto. The Labour press office tweeted the real line, which said: "For the future, continuing modernisation and investment will be needed by the Royal Mail in the public sector."