International Distribution Services blamed budget for adding £120m to yearly costs through NICs increase

The company that owns Royal Mail is mulling job cuts and price hikes on stamps and parcels as it blamed the Labour government’s first budget in 14 years for adding £120m to its costs.

International Distribution Services (IDS) said the government’s decision to raise employers’ national insurance contributions (NICs) compounded challenges for the business as it faces one of the most turbulent periods in the history of its 508-year-old subsidiary, the Royal Mail.