UK postal competition creates 3300 new jobs in the UK
In the past four years, competition in the UK postal market has created 3300 new jobs, according to an independent study by Europe Economics and commissioned by TNT Post. The research found the economic benefit to the UK economy is at least GBP 229 million and could be considerably more by 2016 with an extra 6600 jobs created and an additional GBP 405 million into the UK economy.
One of the key findings of the report found that although there are now 18 licensed competitors to Royal Mail in the UK, it continues to deliver the last mile for 99.8 per cent of mail. Competition has been stifled by the Royal Mail VAT advantage, where 40 per cent of UK business mail remains out of the reach of its competitors.
The report also found that these benefits could have been much greater and earlier if end to end competition and modernisation of the Royal Mail had been quicker.
David Stubbs, Europe Economics, said:
“Royal Mail has been a key beneficiary of competition to date. Prior to the deregulation of the UK postal market, its pace of innovation and reform was slow relative to that in other postal markets. Royal Mail is facing up to its future and starting to address the challenges of its customers who are looking at new ways to communicate or advertise their products.”
Nick Wells, CEO TNT Post UK, said:
“This research proves that postal competition in the UK is good. It is good for business. It is good for the UK tax payer. It is good for Royal Mail. We want to create jobs, we want to innovate, we want to deliver for our customers but we are being held back by the Royal Mail VAT advantage. It has to go.”
The research study also found that competition has allowed customers to benefit from innovative services introduced by competitors.
In the past four years, competition in the UK postal market has created 3300 new jobs, according to an independent study by Europe Economics and commissioned by TNT Post. The research found the economic benefit to the UK economy is at least GBP 229 million and could be considerably more by 2016 with an extra 6600 jobs created and an additional GBP 405 million into the UK economy.
One of the key findings of the report found that although there are now 18 licensed competitors to Royal Mail in the UK, it continues to deliver the last mile for 99.8 per cent of mail. Competition has been stifled by the Royal Mail VAT advantage, where 40 per cent of UK business mail remains out of the reach of its competitors.
The report also found that these benefits could have been much greater and earlier if end to end competition and modernisation of the Royal Mail had been quicker.
David Stubbs, Europe Economics, said:
“Royal Mail has been a key beneficiary of competition to date. Prior to the deregulation of the UK postal market, its pace of innovation and reform was slow relative to that in other postal markets. Royal Mail is facing up to its future and starting to address the challenges of its customers who are looking at new ways to communicate or advertise their products.”
Nick Wells, CEO TNT Post UK, said:
“This research proves that postal competition in the UK is good. It is good for business. It is good for the UK tax payer. It is good for Royal Mail. We want to create jobs, we want to innovate, we want to deliver for our customers but we are being held back by the Royal Mail VAT advantage. It has to go.”
The research study, published today, also found that competition has allowed customers to benefit from innovative services introduced by competitors, such as TNT Post, allowing them to meet the changing needs of customers whether large or small.
Nick Wells, concluded:
“The report shows that small businesses and large businesses alike rely on cost efficient and reliable mail services for their daily success. Full competition, if allowed will create a world class postal market in the UK.”
