Royal Mail
Royal Mail is the company which collects and delivers our letters. It provides the “universal postal service”, which is the collection and delivery of letters, six days-a-week, from any post box to any address in the UK, and all at uniform and affordable prices. The Government believes that this is an essential service, and introduced measures in the Postal Services Act 2011 in order to secure that service for the future.
Government's role
The Shareholder Executive, located in the Department for Business, Innovation and Skills, has responsibility for the Government's shareholding in Royal Mail Holdings plc. The Government's relationship with Royal Mail is at arm's length as we wish to give the Royal Mail Board the freedom to operate the company on a commercial basis.
The Secretary of State for Business, Innovation and Skills holds one special share in Royal Mail, and the special shareholder's consent is required by the company in certain circumstances, e.g. in relation to Board appointments, Board remuneration and significant sales or acquisitions.
The Government also acts as a lender to Royal Mail. Debt facilities have been put in place to meet Royal Mail's working capital requirements, make acquisitions, and to fund the company's modernisation plans.
