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The Czech billionaire bidding to buy Royal Mail is under pressure to cap stamp prices as Labour pushes for tougher concessions on the deal.
The Telegraph has learnt that ministers want Daniel Křetínský, known as the “Czech sphinx”, to rule out further increases to first-class stamp prices as part of his £3.6bn takeover.
They are also pushing for commitments on how much the tycoon will invest in postal infrastructure across the UK amid concerns of crumbling depots.
One source familiar with the discussions said Jonathan Reynolds, the Business Secretary, hoped to use the merger to secure a “big win” for the Labour Party.
Another said: “Reynolds wants to do a good job on this. He doesn’t want prices to go full runaway.”
The swoop by Mr Křetínský, who is bidding through his company EP Group, has sparked concern, largely because the deal would see the postal service pass into private hands – and foreign ownership – for the first time in its 500-year history.
The tycoon has already made a series of legally binding undertakings in an effort to ease these fears. They include maintaining Saturday deliveries for first-class letters, protecting the Royal Mail brand, and keeping the company’s headquarters and tax base in the UK.
Legal undertakings that have already been offered apply for five years, so any stamp price cap may follow a similar template.
EP Group is also in talks with union bosses about a profit-sharing scheme that would see employees handed bonuses if the company meets key financial and delivery targets.
However, ministers are now keen to secure further commitments amid concerns that stamp prices will shoot even higher under the new owner.
Royal Mail has raised the price of a first-class stamp three times in the last year, blaming the increase on climbing costs as letter sending continues to decline. The latest increase, which came into effect earlier this month, raised the price by 30p to £1.65.
Mr Křetínský has previously refused to rule out further price rises, warning it was “simple maths” that the company had to stem its losses.
Second-class stamps are regulated by Ofcom, with the price pegged to inflation until at least 2029.
Discussions between ministers, union bosses and EP Group are said to have moved slowly in recent weeks. However, it is hoped that a deal could be secured before Christmas.
The negotiations also included conversations about the future of Royal Mail’s universal service obligation. Ofcom has put forward proposals to scrap second-class post on Saturdays to help the company save money and improve its quality of service.
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