You are here: Home - Uncategorized -

Royal Mail to get £1.75bn State handout

0
Written by:
18/05/2006

Royal Mail has confirmed that it is to get a £1.75bn package from the Government to help make up its pension fund deficit and pay for urgently needed modernisation to its sorting offices. Around £900m will be in the form of a loan repayable by 2013 and charged at market rates of interest.

“This is rich for what we are increasingly encouraged to think of as a private enterprise company,” said industry analyst David Boulden. “I suppose the thousands of Royal Mail pensioners need to know that their money is safe, but to my mind it’s the taxpayer coming to the rescue of a State-subsidised operation once again.”

However, BBC business editor Robert Peston said: “The fact that the £900m is being given as a loan makes it difficult for competitors to call it a subsidy and claim that it breaches European rules.”

Boulden concluded: “A subsidy is a subsidy by any other name.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Teenagers cannier than the old ones on their mobiles

Teenagers have developed sophisticated saving habits enabling them to get much better deals than their parents on mobile phone call...

Close