Stamps are going up again. First class stamps are jumping tuppence to 32p, and second class up 1p to 22p. In January the market for letter delivery is opening up, and after 350 years the Royal Mail is losing its monopoly. With a £4bn pension black hole, the organisation is in trouble, and last week its chairman Allan Leighton warned that without more flexibility from the regulator it could go bust.
In fact he put it a little more strongly than that. He said, “Reality and regulators is an oxymoron.”
The management due of Leighton, and its chief executive Adam Crozier are arguing that the Royal mail is paying for mistakes made in the past. In 2000 it was losing £1mn a day, but in the last six months, made a £159mn profit.
Ex FA chief said, “No one should regard today’s proposals as anything other than tough.”
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