Royal Mail owner warns on prices and jobs

Reuters

Royal Mail owner IDS warns of cost pressures after return to profit

(Reuters) -The parent firm of Britain’s Royal Mail warned of a worsening cost environment following last month’s budget and said it could not rule out price hikes and higher automation as it looks to cut costs after returning to a first-half profit. International Distribution Services, which owns Royal Mail and international parcels network GLS, joined other British businesses in warning of higher prices after finance minister Rachel Reeves’s budget raised employers’ National Insurance, or social security, contributions. The changes will cost Royal Mail, employer of about 130,000 people in Britain, around 120 million pounds ($151.7 million) a year, disproportionately impacting its business relative to its parcel competitors, CEO Martin Seidenberg said.