Commenting on the announcement that Royal Mail's profits have fallen by almost a third, Liberal Democrat Shadow Business Secretary, Sarah Teather said:

"It's no coincidence that news of Royal Mails plummeting profits comes just a day after the Government's own review body said that liberalisation of the market has produced no benefit.

"The Government has allowed this great British business to fall apart at the seams. Royal Mail can be turned around, but only if it is given the freedom to innovate and attract new customers.

"Unlike its private sector competitors, Royal Mail has been starved of investment. Selling off 49% of Royal Mail's shares would release the cash needed to modernise the business, without having to ask taxpayers to pick up the bill."