The new coalition government are seeking a partial privatisation of Royal Mail.

The Conservative and Liberal Democrat government have confirmed that they are looking for an injection of private capital in Royal Mail, but have not revealed what stake of the business will be up for sale.

Post offices will be allowed to offer a wider range of services and ideas including a Post Office bank - which the previous government was considering - will be explored to provide new sources of revenue.

Royal Mail recently announced that operating profits for the last financial year were up 26% on the previous year to £404m. However, revenues have fallen and there are concerns over the deficit in its pension scheme.

The last Labour government attempted a partial sell off of Royal Mail last year but had to scrap its plans following widespread opposition from its own MPs.