Financial Times FT.com

UK election 2005

Labour pledge to keep Royal Mail in state hands

By Christopher Adams, Political Correspondent

Published: April 8 2005 22:02 | Last updated: April 8 2005 22:02

The Royal Mail is to remain in government hands, Labour's election manifesto will pledge next week, in a promise that is likely to be welcomed by party loyalists and the trade unions.

Tony Blair has decided that, while competition to open up the postal market should continue as the government brings more private involvement into the running of public services, the Royal Mail itself should remain in state ownership.

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