The government has announced that it will go ahead with the privatisation or sale of Royal Mail.

Business Secretary Vince Cable made the commitment after receiving updated recommendations from businessman Richard Hooper. His latest report says the universal postal service can be maintained only by an injection of private sector money and expertise.

"Royal Mail is facing a combination of potentially lethal challenges - falling mail volumes, low investment, not enough efficiency and a dire pension position," said Mr Cable.

"We will come forward with new legislation in the autumn. It will draw heavily on Hooper's analysis and recommendations and the government's wider objectives, including the need for employees to have a real stake in the future of the business."

The CWU trade union have warned that the plan will devastate the postal service and lead to higher postal charges.