Days after a report revealed that deregulation of postal services had not provided significant benefits to consumers, Royal Mail has revealed annual losses of Â£200m. For the first time, the universal system for delivering letters and parcels (which allows senders to enjoy the same rates regardless of where they are in the country) was not profitable.
Â£800m was pumped into the Royal Mail’s pension pot but despite cost-savings from staff redundancies and 600 Post Office branch closures, the poor results have prompted Royal Mail chief executive, Adam Crozier, to call for greater freedom and deregulation. He said that Royal Mail now competes not just with other mail companies but also online companies. â€œWe probably lost more direct marketing business to Google than to TNTâ€ he said.
On the brightside for eBay buyers and sellers, Crozier reiterated the Royal Mail’s commitment to the universal service calling it â€œpart of the fabric of our society and… vitally important to social cohesion and to the UK economy.â€