Taxpayers could be on the hook for a multi-million-pound bill to help Royal ... trends now
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Taxpayers could be on the hook for a multi-million-pound bill to help Royal Mail deliver post.
The 500-year-old postal service, which this month became a takeover target, has urged the Government to contribute to the cost of distributing letters.
It has long argued for a change to rules saying it must deliver letters UK-wide for the same price six days a week.
Struggle: Insiders say the Universal Service Obligation has made its parent company International Distributions Services vulnerable to a takeover
Insiders say the Universal Service Obligation (USO), which costs Royal Mail up to £675 million a year, has made its parent company International Distributions Services vulnerable to a takeover, with the board ten days ago rejecting a bid £3.2 billion bid from Daniel Kretinsky.
Last week IDS urged regulator Ofcom to move faster on reform amid reports the Czech billionaire – who co-owns West Ham Utd and has a stake in Sainsbury’s – was working on a fresh offer.
Royal Mail argues the system is outdated as letter volumes have fallen from 20 billion two decades ago to 7 billion. They are likely to fall to 4 billion in five years.
Royal Mail, which was privatised in 2013, is hoping to cut second class deliveries to reduce costs. In the meantime, it has asked Ministers to contribute financially until the rules are reformed, though
