Downing Street Stands Firm on Six-Day Service
The UK government has stated that it will not allow Royal Mail to scrap Saturday post deliveries. Number 10 has made it clear that it "would not countenance" any cuts to the six-day service, following speculation over the weekend about possible reductions.
Ofcom to Publish Documents on Potential Changes
Postal regulator Ofcom is set to release documents on Wednesday, outlining the need for updates and evolution in order to better meet consumer needs. While Ofcom has refrained from commenting on the proposals, Sky News has reported that the documents may include the abolition of Saturday deliveries.
Financial Struggles for Royal Mail
Royal Mail's chief executive has warned that the 500-year-old company may require a government subsidy to stay afloat. The company, privatized in 2013, has faced a series of industrial disputes in recent years and has come under increasing scrutiny for its performance. In November, Royal Mail was fined £5.6 million by Ofcom for failing to meet delivery targets, and it reported half-year losses of £319 million.
Options for Addressing Challenges
Royal Mail's owner, International Distributions Services, has outlined several potential solutions for the company's challenges. These include significantly increasing prices, seeking a government subsidy, or reforming the universal service to better reflect customer needs and market realities.
Ofcom's Document Does Not Contain Conclusions or Formal Recommendations
The Ofcom document to be released on Wednesday will not provide any conclusions or formal recommendations. Any changes to Royal Mail's universal service obligation (USO) that are recommended by the regulator would require a vote from Members of Parliament.
