Royal Mail could cut postal deliveries to as few as three days a week and save up to £650 million a year under options put forward to reform the service by the industry regulator.
In a long-awaited report, Ofcom outlined options for overhauling Britain’s universal postal service, warning that it risks becoming “unsustainable” without reform.
The regulator set out two possible proposals, including cutting Royal Mail’s letter delivery service from six days to five, or even three, a week.
It could save Royal Mail £100 million to £200 million if the service was cut to five days and £400 million to £650 million if it was reduced to three, according to Ofcom.
The news, which comes hot on the heels of the ITV drama Mr Bates vs The Post Office, has raised further concerns over how privatisation has shaped essential public services, with people equally aggrieved over the loss of jobs in South Wales and the state of the rail, water and energy industries.
Reminders that George Osborne’s best friend also profited handsomely from the Royal Mail sell-off have also been making the rounds on social media.
Lansdowne Partners – who employ the Chancellor’s old friend Peter Davies – were among 16 priority investors in the share issue.
It was claimed the 16 companies were given priority as they were seen as stable long-term investors.
But Labour leader Ed Miliband said yesterday that 12 sold their shares at a quick profit.
Lansdowne secured profits of £36 million from the privatisation in six months – £210,000 for each day since the sale.
Ed Miliband, who was Labour leader at the time, told the Commons: “The sale was grossly undervalued. Shares sold for £1.7billion are now worth £2.7billion. And who cashed in?
“Twelve of the 16 so-called long-term investors made a killing worth hundreds of millions in weeks.”
Related: Owner of Tata Steel rakes in £3bn profit as it axes 3,000 jobs due to ‘financial reasons’