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CONSIGNIA is in negotiations with the Government over its dividend policy, in a move that could lead to it receiving back-payments of pounds 1.8 billion. The renamed Post Office, which is losing pounds 1 1/2 m a day, is expected to ask for the money, which was given to the Government under a dividend policy, to cover its losses and restructuring. Allan Leighton, the Consignia chairman, is likely to make the request later this month when he unveils the organisation’s full-year results.

The chairman of postal group Consignia today announced he is seeking an urgent rise in the price of first and second class stamps.
Allan Leighton told BBC Radio 4 that he has applied for an increase of a penny – taking first class stamps to 28p and second class to 20p.
“I happen to think that 27p for a first class stamp is probably one of the best value items that anybody can purchase any day of their lives,” he said.
“And do I still believe that is the case at 28p? Yes I do and therefore that is why I think we can put the price increase through.”
Last month Consignia warned the price of a stamp could rise by up to 3p a year if plans to open the service to competition go ahead.