Royal Mail: New Government must tenaciously defend consumers' rights: Greg Wright

Business Secretary Kemi Badenoch met IDS bosses earlier this month and emphasised the need to protect services for the vulnerable, those in remote areas and small businesses. Shareholders will vote on the deal in September.

So what happens next? Could the new Government throw a spanner in the works?

AJ Bell investment analyst Dan Coatsworth, said: “Chancellor Jeremy Hunt has suggested the takeover would not be opposed in principle, but his view might soon be irrelevant. Meanwhile Shadow Business Secretary Jonathan Reynolds welcomed assurances that the proposed new owner of Royal Mail will respect the company’s history and tradition and offered a series of undertakings so as not to rock the boat with the UK operations. Labour says it would take the necessary steps to “safeguard its undeniable identity and place in public life”.

However, the UK’s Greeting Card Association (GCA) chief executive Amanda Fergusson said its members are worried that the undertakings being proposed by EP Group are inadequate and could be short-lived.

She added: “Undertakings that expire after a single five-year Parliamentary term will not inspire confidence from small businesses and consumers that the service is being protected for the long term. The Government and regulator must insist on lock-tight, long-term undertakings on affordability and reliability and the protection of our national service before approving this deal.

“What’s more, any future reform of our delivery service must be dependent on Royal Mail meeting the performance targets they’ve already signed up to.”

The GCA is asking Ofcom and Parliamentary candidates to “renew their commitment to the Royal Mail service” by making a number of pledges, which include protecting the Saturday delivery service at an affordable price and making it legally binding. It is also calling on budding MPs to make a commitment to protect consumers from above-inflation price rises on second class stamps, extend that protection to the first-class service, and make any future price rises conditional on agreed service targets being met. The new Business Secretary will need to display tact and tenacity to ensure consumers’ rights are protected if the deal goes ahead.

Greg Wright is the deputy business editor of The Yorkshire Post.

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