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Following an independent study by Richard Hooper, the Government is to rule out privatising the Royal Mail.

An interim report in May stated that "the status quo is not tenable" and that "radical"changes would be necessary.

The final report has now been delivered to the Business Department and it will be published in due course, but the Press Association is already citing "a source close to Lord Mandelson" as ruling out privatisation.

PA quotes the source as saying:

"Our concern is to save the Royal Mail and secure its
future, not privatise it. We have a manifesto commitment to a publicly
owned Royal Mail and we will not be setting that aside."

Any Conservative reaction will be posted as it emerges.

Jonathan Isaby

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