Royal Mail owner blames Labour budget for preventing return to profit

International Distribution Services' says it will take 134m hit from budget but shows improved underlying financial performance

The company that owns Royal Mail has blamed a 134m hit from Labour's first budget in 14 years for preventing a return to profit, as its underlying financial performance improved.

International Distribution Services' half-year results illustrate the difficulties it is facing during one of the most turbulent periods in the history of its 508-year-old subsidiary, the Royal Mail.