DTI backs Royal Mail bid for funding

The Department of Trade and Industry has backed The Royal Mail’s bid for
extra funding from the Treasury to modernise its operations and plug its pension

According to the BBC online, the Royal Mail has made a formal request for a
cash injection of £1.25bn, and greater access to £750m it has on its books.

The request for money comes at a time a time when the government is trying to
rein in public spending and, if it is granted, it would most likely have to be
paid back at a later date, which could mean a share sale, the BBC claimed. 

Increasing competition in the postal industry from non-government players has
meant the Royal Mail needs around £2bn to upgrade its equipment to remain

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