The Treasury has turned the screws on Royal Mail. Only 75% of first class mail hit its target last quarter. That is by any measure a system under pressure. The number has been slipping for months and now the fiscal hawks are circling.
This is not just about letters. It is about trust. And about the bottom line. The Treasury sees a public service failing on its core promise. Sources inside the department tell me the mood is one of impatience. They want a plan. And they want it now.
What does a Treasury demand actually mean? In Whitehall, it is a warning shot. The minister responsible will be called in. Questions will be asked about the universal service obligation. That is the legal requirement to deliver to every address for the same price. Some in government think it is outdated. Others fear what happens if you drop it.
Royal Mail’s defence is familiar. More parcels than ever. Fewer letters than ever. The union says the real problem is underinvestment. But the Treasury’s focus is on the headline. 75%. That is the number that matters.
This will run. The backbenches are already stirring. Expect a debate. Expect demands for a new target. And expect the minister to sweat. Because when the Treasury demands reform, you deliver. Or you are out.
