Royal Mail: Osborne 'regrets' job losses

Royal Mail is planning to cut 1,600 roles as part of a drive to cut costs, mainly among its head office managerial staff.

The news comes on the same day that figures show a fall in petrol prices pushed the UK inflation rate to a new four-year low of 1.7% last month.

Chancellor George Osborne said the job losses were a "matter of great regret" but said in other areas jobs were being created.