Tag: Royal Mail

UK Mail Operators to be Exempt from VAT?

The Sunday Telegraph reports today that the views of Nigel Stapleton, Postcomm’s Chairman-designate, ‘will set him on a collision course with the European Commission’. This is unlikely! The British Government (including Postcomm) oppose the imposition of full-rate VAT on stamps. However, a draft EC Directive allows there to be a reduced rate which could, in the UK, be a pain-free alternative to the current situation in which Royal Mail’s customers pay hidden VAT of around 3%. This is because Royal Mail pass on to their customers the VAT that the company pays but cannot reclaim. It may be, therefore, that the introduction a low VAT rate might level the competitive playing field without increasing the price of a stamp. This issue will be explored in some detail in a consultative document which Postcomm intends to publish within the next few weeks.

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Royal Mail must modernise says new regulator

ROYAL MAIL needs to modernise to become profitable and meet regulatory targets, the new industry regulator said yesterday as talks continued between the postal organisation and unions over changes to working practices.

Nigel Stapleton, chairman of Uniq, the convenience food company, and a former chairman of Reed Elsevier, the publishing group, and Cordiant, the advertising business, will take up his appointment as the second postal regulator in January.

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Postcomm frees Royal Mail’s competitors to provide unrestricted postal services

Licensed postal operators other than Royal Mail will be able to carry any mail they wish from 31 October, following a determination on that day by Postcomm. The determination is in response to escalating unofficial strike action in London and some surrounding areas. The determination will enable four long-term licence holders to provide unrestricted mail services to any customer and one interim licence holder to provide a wider range of services to existing customers. Under normal circumstances, competitors of Royal Mail are limited by their licences to providing relatively large bulk mail services for business customers. Today’s determination removes these restrictions for a period. Holders of long-term licences are Hays Commercial Services Ltd, TPG Post (UK) Ltd, UK Mail Ltd and Express Ltd. The interim licence holder concerned is TNT UK Ltd.

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Union activists blamed for prolonging London mail strike

Royal Mail today apologised for the severe disruption caused to postal services in London and some surrounding areas by wildcat, unlawful and unofficial strikes. Some Mail boxes in affected parts of London will be progressively sealed by the end of the week if the strikes continue, to prevent the build up of a massive backlog of letters with nowhere to go. Special Delivery services will no longer be accepted within strike-hit parts of London. “We’re sorry that the disruption to customers has reached this point”, said Chief Executive Adam Crozier. “We would only seal boxes as a last resort. But the extent of the wildcat action makes it impossible to handle and store safely the millions of letters and packets that we deal with every day in London. This does not look like coincidence to us,” said Chief Executive Adam Crozier. “What we’re seeing is a concerted campaign, orchestrated by union activists, to try to force Royal Mail to increase its London Weighting payment over and above the existing offer. This is unofficial and unlawful. They’re cajoling postmen and women in London to strike – and they’re threatening to do the same to their colleagues across the UK, who have voted against industrial action. Royal Mail won’t be blackmailed.

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UK Royal Mail buys 17% of Moving Technologies

Royal Mail has snapped up a 17% share in Moving Technologies, a supplier of address change technology. As part of the deal Royal Mail has signed up to launch a new online change of address service. Over 800 companies are signed up to the service, including the main utility providers, banks and supermarkets, a number expected to grow to over 2,000. It is estimated that over 11m home-movers could benefit from using the service each year.

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