Job cuts and price increases in the lead-up to privatisation were the reason Royal Mail missed key performance targets earlier this year, postal union Unite claimed yesterday.

Postal regulator Ofcom said the recently privatised company missed a requirement to deliver 93 per cent of first-class letters the day after collection, reaching only 91.7 per cent.

Ofcom said Royal Mail was also required to meet a target of 91.5 per cent of next-day delivery for first-class post throughout Britain and not just in densely populated areas.