Companies roundup: Tory tax cuts & Royal Mail results

Rishi Sunak is preparing a £2.4bn tax cut for pensioners, in a bid to boost his difficult election campaign. The Tories said, if they win the election, they would increase the personal tax allowance for pensioners every year, so it rises in line with the state pension.

The Conservative government has frozen income tax thresholds since the 2021-22 tax year and committed to doing so until 2027-28. With the state pension increasing every year in line with the highest of wage growth, inflation or 2.5 per cent, more and more pensioners have been paying income tax. 

Increasing the personal allowance in line with the triple lock would address this, but there would be complications to consider, including how to deal with people receiving the state pension who are still working, and the impact of keeping the personal allowance frozen for the rest of the workforce. VC

Read more: What a Labour government would mean for your money

Royal Mail ‘close to breakeven’ says IDS

International Distributions Services (IDS) released its delayed full-year results after market close on the Friday before a long weekend. Usually that would herald bad news. But the Royal Mail owner was not far off its guidance of breakeven adjusted operating profit, after a better second half for the postal service. The adjusted operating loss for the 12 months ending March 24 was £28mn, compared with £71mn the year before. Royal Mail itself posted a £348mn operating loss, an improvement on the £419mn in the 2023 financial year. 

IDS is in the midst of a buyout process from Czech billionaire Daniel Křetínský, with the board backing a potential offer of 370p a share. Chair Keith Williams said EP Group, Křetínský’s vehicle, had agreed “a set of contractual undertakings to protect key public interest factors and recognise Royal Mail’s status as a key part of national infrastructure”. AH