Why do we insist that there is no difference between a profitable business that pays its own way, like the postal service, and one that depends mainly on taxation to fund it, like a school or a hospital?
Handing over management of major infrastructure to the private sector means decisions over its use are no longer made in the national interest but in the interests of shareholders, which can be very different.
Right-wing think tank Bow Group has admitted that the privatisation of the Royal Mail would see the price of stamps rise and leave a “poisonous legacy” for the Tory party.
Now the government has announced its intention to privatise Royal Mail, we must face up to the prospect of what the postal service might look like in a few years’ time. If the energy or rail privatisations are anything to go by those prospects are not good.
Earlier this week Mario Dunn of Save Our Royal Mail wrote a post claiming that privatisation of the postal service could see the price of a stamp rise to £1. In the interests of debate we’ve allowed Royal Mail to reply. Candice Macdonald works for the Royal Mail Group Royal Mail makes commerce happen by [...]
It is highly likely that the government will begin the privatisation of Royal Mail later this year.
Along with a sell off comes the real threat of stamp prices hitting £1. Price regulation on most stamps was scrapped to boost its attractiveness to investors. It is also quite possible that Royal Mail’s VAT exemption will become unlawful. Add VAT to just one price increase similar to the last one and the first class stamp would hit 94p.
The right-wing Think Tank Reform published a report yesterday claiming that private firms are better at running prisons. There are fundamental problems with Reform’s analysis, however.
With the memory of the G4S debacle at the beginning of the summer still sore, today’s news that the government plans to outsource huge swathes of the probation service will be met by cynicism and concern. British government use of the private sector to run services has had a difficult history. However, the justice secretary [...]
Jos Bell writes on the progress of the Save Lewisham Hospital campaign and the continued ignorance of Messrs Hunt and Kershaw.