Chuka Umunna MP, Labour’s Shadow Business Secretary, commenting after Vince Cable and Michael Fallon’s appearance before the BIS Select Committee, said:

“Today’s report by the Bureau of Investigative Journalism which suggests City institutions - including with links to the Conservative Party - had been given privileged access to Royal Mail shares raises very serious questions. It is clear that the fire sale has been hugely mishandled, yet Vince Cable and Michael Fallon have their heads in the sand and continue to defend it. They should apologise and acknowledge the huge mistakes they have made.

“The Tory-led government is still trying to dodge mounting questions, including on the apparent ‘gentleman’s agreement’ ministers made with big City investors to provide a long-term shareholding in the business, only for them to sell up straight away to make a fast buck. It is time for ministers to finally come clean on how the public was fleeced of hundreds of millions of pounds – they should confirm the identities of the priority investors without further delay.

“Taxpayers were short changed to the tune of hundreds of millions of pounds as a result of the botched Royal Mail fire sale which David Cameron insisted on pressing ahead with despite widespread opposition.”