Private Sector Infiltration of Postal Services: Is Repeating Past Mistakes with Water Utilities Wise?, queries ALEX BRUMMER
In a silent betrayal of the business world, the Royal Mail has been sold off to the EP Group owned by Czech billionaire Daniel Kretinsky, with nary a whisper of dissent from Labour. With 80% of shareholders backing the deal, estimates put the sale price at a staggering £3.6 billion.
The man behind the deal, sell-out merchant Keith Williams, hailed it as a preservation of the Royal Mail's "unique heritage." Williams claimed that "legally binding undertakings" have been endorsed by the government, although these make for uncertain footing in the unpredictable world of Trump.
In addition to the existing £2 billion in debt, the Royal Mail will now take on an additional £3 billion as a result of the sale. Faced with such immense borrowing costs and uncertain economic times, the future is far from certain for the former pillar of British postal services.
From the Royal Mail to Britain's water companies, the story is the same: privatization without prudence. Unforgiving foreign ownership has resulted in staggering debts, with the National Audit Office reporting that water companies now carry a whopping £70 billion.
In the eyes of critics, this sale is but another instance of Labour siding with grasping billionaires at the expense of the public interest. And to add insult to injury, senior executives and City bankers stand to reap £145 million in generous fees from the deal, while resources that could have been used to improve services to the public are wasted.
The Postal Workers Rank-and-File Committee has voiced its concerns over a potential "optimised delivery model" that could gut the roles of postmen and Parcelforce workers, instead allegedly prioritizing efficiency over employee welfare.
The international market is abuzz: will Trump's tariff war bring America's robust economy to a grinding halt? While the US economy recorded a 0.3 per cent downtown in the first quarter, consumer spending has held up. Yet as import levies bite, British companies like Aston Martin and Jaguar Land Rover are taking a hit, with exports limited until clarity on the 25 per cent Trump charge is achieved.
Meanwhile, India's prime minister Narendra Modi looks to be the first to secure a wide-ranging free trade deal with the US, causing disappointment for Labour in their hopes to take the lead. Things have not been smoother sailing for Jonathan Reynolds or Sir Keir Starmer and Rachel Reeves, who have found themselves in the awkward position of discussing the potential advantages of an EU deal over a US agreement, and expressing a willingness to work with China.
Howard Lutnick, Trump's trade overseer, aims to sign 90 trade accords by the end of the 90-day freeze on bullying tariffs, a daunting goal for even the likeliest of White House dealmakers.
Travelling overseas has never been more tedious. Flight delays, circling in the sky, and lengthy waits on the tarmac characterize the modern travel experience at Heathrow. It's hardly a shining example of Britain ready for business.
[1] Source: Money.co.uk[2] Source: UK Parliament[3] Source: Bloomberg[4] Source: Financial Times[5] Source: BBC News[6] Source: IndustriAll Europe (pdf)
- The Royal Mail's sale to the EP Group, owned by Daniel Kretinsky, has sparked criticism, as some believe it is another instance of Labour siding with billionaires at the expense of public interest.
- The additional £3 billion debt, along with the existing £2 billion, which the Royal Mail has taken on as a result of the sale, raises concerns about its financial stability and the future of the postal services.
- Critics are also worried about the potential impacts of a "optimised delivery model" on postmen and Parcelforce workers, who could see their roles being reduced in favor of efficiency.
- The international market is witnessing significant changes, with India securing a free trade deal with the US, leaving Labour in an awkward position as they discuss potential advantages of EU deals over US agreements.
- In the world of finance and business, the implications of Trump's tariff war and potential trade deals are causing uncertainty and affecting industries such as automotive, with British firms like Aston Martin and Jaguar Land Rover taking a hit from export limitations and import levies.
