Tag: UK

Ministers are set to back Royal Mail’s plans for employee share ownership next week in a move that will trigger a showdown with Labour backbenchers and unions who have condemned the scheme as a partprivatisation of the service. The Times has learnt that Gordon Brown, the Chancellor, and Alistair Darling, the Trade and Industry Secretary, are preparing to endorse the controversial plan as they sanction up to pounds 2 billion in state cash for the organisation next Thursday, when Royal Mail reports profits of more than pounds 600 million.

Royal Mail will also prepare the ground for employee share ownership early in the week when it announces the number of responses to a letter to the 180,000 staff from Allan Leighton, the chairman, asking them if they want free shares. Royal Mail executives are confident that they have a strong number of registrations for shares and may release the number on Monday.