Recent news that the Post Office could soon cut postal deliveries to as few as three days a week has raised further concerns over how privatisation has shaped essential public services, with people equally aggrieved over the loss of jobs in South Wales and the state of the rail, water and energy industries.
George Osborne’s best friend profited handsomely when the Royal Mail was sold off in 2013 under the David Cameron administration.
Lansdowne Partners – who employ the Chancellor’s old friend Peter Davies – were among 16 priority investors in the share issue.
It was claimed the 16 companies were given priority as they were seen as stable long-term investors.
But Labour leader Ed Miliband said yesterday that 12 sold their shares at a quick profit.
Lansdowne secured profits of £36 million from the privatisation in six months – £210,000 for each day since the sale.
Ed Miliband, who was Labour leader at the time, told the Commons: “The sale was grossly undervalued. Shares sold for £1.7billion are now worth £2.7billion. And who cashed in?
“Twelve of the 16 so-called long-term investors made a killing worth hundreds of millions in weeks.”
Related: The Crony Chronicles: How Thatcher’s housing minister’s son became a property tycoon