Royal Mail-owner's shares rise as Ofcom opens door to three-day week

Royal Mail could be allowed to cut delivery days from six to three, under proposals set out by the communications regulator. Shares in parent group International Distributions Services (IDS) have risen by 5 per cent as a result. 

Ofcom said the postal service “must modernise” in order to survive, and estimated that Royal Mail could achieve an annual net cost saving of £400mn-£650mn if letter deliveries were reduced to three days a week. It could save £100mn-£200mn a year if it moved to a five-day week.