Tag: UK

The Royal Mail is to remain in government hands, Labour’s election manifesto will pledge next week in a promise that is likely to be welcomed by party loyalists and trades unions. Tony Blair has decided that, while competition to open up the postal market should continue as the government brings more private involvement into the running of public services, the Royal Mail itself should remain in state ownership. The manifesto pledge effectively rules out a partial sell-off of the business, one option that is thought to interest Allan Leighton, its chairman. There has been persistent speculation that the government might approve a part-privatisation after the general election. However, ministers are in agreement with trades unions, which have argued fiercely against it.

The price of a first class stamp went up by 2p – to 30p – today as the Royal Mail prepares to lose its 350-year monopoly of the postal industry next year.
The rise was part of a series of increases in postal service charges prior to the full liberalisation of the industry next January, when any licensed operator will be able to deliver mail to business and residential customers. Second class postage remains at 21p.