A government-commissioned review claims Royal Mail's finances are so precarious they could destabilise its commitment to the universal postal service. According to the document, The Challenges and Opportunities Facing UK Postal Services, Royal Mail may soon become incapable of maintaining its obligation to deliver a UK-wide pricing structure for its letter and parcel service.
Royal Mail has a £3.4bn pension deficit and last year its profit fell by a third to £223m. The review panel is due
to make final recommendations for reform later in the year.
A Royal Mail spokesman says: "The report identifies the ways in which the open postal market is clearly not working and Royal Mail looks forward to submitting its further views on the changes that are required in the market." A spokesman for rival Business Post adds: "The focus for the future needs to be not on stifling competition, but on accelerating innovation."
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