Call to part-privatise Royal Mail

The Royal Mail should be part-privatised, or mail deliveries on Saturdays may be axed, according to a report from PostComm. The report warns that the Post Office is in desperate need of a cash injection to halt its deterioration.

It adds that the Government needs to support a partial sell-off of some of Royal Mail’s other services, such as its licence to deliver post in certain parts of the UK, as part of a radical transformation of the service. The report says that the removal of Saturday deliveries could save £270m a year. The Post Office recorded a £279m loss for the year to end-March.

PostComm chairman Nigel Stapleton says the Royal Mail may require a government subsidy, and adds that private sector partnerships had worked in other European countries.

Royal Mail’s 350-year monopoly on the postal system ended in 2006, when other licensed operators were given the right to collect and deliver mail. Royal Mail has lost business in the bulk mail collection and sorting market, but still has to offer the less profitable universal delivery service.

PostComm says more competition in the sector is required to ensure high quality service. In order to encourage new operators, PostComm says that Royal Mail VAT exemption should be scrapped.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here