Live updates

Royal Mail privatisation 'most likely in 2014'

The privatisation of the Royal Mail Group will most likely take place in the first quarter of 2014, with a stock flotation being the main preference, its Chief Executive has told Reuters.

Idon't think that it is impossible that we could be in a deal mode in 2013, butpersonally I think it is probably more likely to be the first quarter in2014. My preference and I believe thegovernment's preference is a float.

– Moya Greene, CEO, royal mail

Second-class stamps 'capped at 55p'

Ofcom said that, subject to the safeguards it is putting in place, Royal Mail will make decisions on the price of stamps, not the regulator. It said it had put a cap on the price of second-class stamps for standard letters (55p) to protect vulnerable consumers.

Ofcom's decisions are designed to safeguard the UK's postal service, ensuring it is sustainable, affordable and high quality, to the end of the decade and beyond. The measures ensure that Royal Mail's products remain affordable for vulnerable consumers and small businesses.

– Stuart McIntosh, group director of competition, ofcom

Advertisement

Will the price hike put people off sending letters?

Advertisement

Royal Mail: We had no choice

We know how hard it is for households and businesses when our economy is as tough as it is now. No-one likes to raise prices in the current economic climate but, regretfully, we have no option.

That service is under threat from declining volume, e-substitution and ever increasing competition. Because of these pressures Royal Mail has lost £1 billion over the last four years; the sustainability of the service is now at risk.

– Royal Mail chief executive Moya Greene
Load more updates