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Change is coming for companies with public sector roots

After a damaging few months, listed businesses such as Royal Mail and FirstGroup look vulnerable
March 8, 2023
  • UK courier in battle to survive
  • New incentives for train operators 

Last month, Royal Mail’s management team was hauled in front of a House of Commons select committee to answer questions about the business. It wasn’t a comfortable experience for International Distribution Services (IDS) chief executive Simon Thompson, who fended off allegations that the 500-year-old courier tracked the speed of its posties in order to discipline them, and had suspended legitimate sick pay during strike action. 

One line of questioning stood out, however. During a discussion about Royal Mail’s universal service obligation (USO) – which requires it to deliver letters to all addresses in the UK, six days a week – one committee member said: “You would like to compete in the parcels market – but you have a statutory obligation to deliver six days a week. Is not the evidence before us that you cannot do both? You have to do one or the other.”

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