Osborne announces £4.5bn of further cuts and sale of Royal Mail

The government is selling off its last stake in Royal Mail
The government is selling off its last stake in Royal Mail
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GEORGE Osborne has announced Government departs will need to find £3bn worth of emergency cuts as he seeks to continue paying down the national debt.

The Chancellor has told the House of Commons he will pay off £4,5bn worth of debts with the in-year cuts, announced just weeks after the Conservatives were re-elected.

The £3bn of cuts come on top of the £13bn of savings departments are already making.

Mr Osborne said the Government will also sell off its remaining 30 per cent stake in Royal Mail, estimated to being in the further £1.5bn earmarked for debt reduction.

The Treasury said that was equivalent to around 3% of unprotected departmental spending.

The Government has appointed Rothschild to advise the Department for Business on the sale of the Royal Mail stake.

He told MPs: “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.

“Further savings in departments this year – and selling our stake in the Royal Mail. Getting on with what we promised.

“Reducing the deficit – that is how you deliver lasting economic security for working people.

“For as everyone knows, when it comes to living within your means, the sooner you start the smoother the ride.”