Labour MPs have called for Royal Mail to be brought back into public ownership, arguing that privatisation has proven unworkable. During a Commons debate on Monday, Darren Jones, a former chief secretary to the prime minister, stated that the company 'cannot be run effectively by the private sector' and that the privatisation 'was a mistake'. Jones, the MP for Bristol North West, said the coalition government 'got this wrong' when it separated Royal Mail from the Post Office, and urged the current Labour government to reverse the decision.
The push for renationalisation comes as Royal Mail faces growing criticism over delayed deliveries. During the debate, MPs highlighted constituents who missed medical appointments, court hearings and credit card bills due to postal failures. Royal Mail's parent firm, International Distribution Services, was purchased last year by Czech billionaire Daniel Kretinsky, intensifying scrutiny of the company's operations.
Jones argued there were only two realistic options: either facilitate the end of the public service provided by Royal Mail, or renationalise it. He warned that 'once it is gone, it will not come back'. While acknowledging he is 'not a natural fan of the government borrowing yet more money to nationalise businesses', Jones expressed confidence the move could be achieved 'within its fiscal rules'. He suggested a combination of underspends from other budgets and a public share offering, potentially including a special scheme for Royal Mail employees, could fund the transition.
Other Labour MPs shared similar concerns. Chris Bloore, MP for Redditch, criticised regulator Ofcom for failing to 'compel improvement' in Royal Mail's services, questioning whether 'more fines will not fix this'. Simon Opher suggested taking Royal Mail 'back into public ownership', while Dave Robertson argued the government should examine senior leadership pay and 'think about an ownership model for the future'. Ian Lavery said a postal service 'should exist to serve the public interest, not simply the interests of the market'.
Business minister Kate Dearden acknowledged Royal Mail's performance has been 'unacceptable for far too long' but made no commitment to examining renationalisation. Royal Mail said it has deployed a new delivery model in around 90 per cent of delivery offices, with first class quality of service improving by 9 per cent and offices operating the new model delivering to around 95 per cent of addresses daily on average, compared with 88 per cent before rollout.