Azara Blog: UK postal service "liberalisation" not a benefit to small businesses and households

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Date published: 2008/05/06

The BBC says:

The liberalisation of the UK postal service has produced "no significant benefits" for either households or small businesses, a report has said.

That is the initial finding of an independent review of the UK postal sector commissioned by the government.

It warned there was now a threat to the Royal Mail's financial stability.

The Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail.
While the initial report said homes and small firms had not gained from the increased competition, it said large companies had "seen clear benefits from liberalisation - choice, lower prices and more assurance about the quality of the mail service".

Who would have thought, eh? The whole point of the "liberalisation" of the postal service was to end the subsidy of the service by large companies for the benefit of small companies and households. So it's not very surprising that the former have gained and the latter have lost.

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