Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Statement by the Parliamentary Under-Secretary of State for Employment Rights, Competition and Markets

16 December 2024

Proposing MP
Justin Madders Lab
Ellesmere Port and Bromborough
Type
Written Ministerial Statement
Department
Department for Business and Trade
View on Parliament.uk -->
TAGS
Economy Employment

At a Glance

Issue Summary

The statement addresses the proposed takeover of Royal Mail by EP Group and the legally binding undertakings given to secure its long-term financial sustainability.

Action Requested

The government has secured significant commitments from EP Group, including a 'Golden Share' that prevents certain actions without government's permission. Additionally, there are financial commitments to strengthen Royal Mail’s finances and ensure it meets performance targets before value extraction can occur.

Key Facts

  • The takeover bid is still ongoing and subject to regulatory processes.
  • In 2023-24, Royal Mail recorded an operating loss of £348 million and faced a £5.6 million fine for failing to meet quality service targets.
  • EP Group has committed to issuing the Department for Business and Trade with a 'Golden Share' in Royal Mail.
  • The Golden Share will remain in place permanently, including future changes in ownership.
  • There are financial commitments to guard against value extraction and strengthen Royal Mail’s finances.
  • EP Group must ensure Royal Mail can afford transformation and meet specific performance targets before extracting value.
▸ Assessment & feedback
Summary accuracy