As Royal Mail price increases are set to go ahead, there are fears that freelancers, contractor and small businesses reliant on postal services will be hit the hard by the changes.
According to reports the communications regulator, Ofcom, is currently considering a proposal from Royal Mail that will see second-class stamp prices rise by 19p as well as unlimited price increases on first-class stamps until 2018.
The proposal comes after Royal Mail suffered a £120m loss in 2011, which has been put down to the increasing use of email, the internet and mobile phones. The postal service has argued that changes need to be reintroduced in order for them to remain profitable. The new prices, if agreed, are expected to be implemented in April 2012.
The Forum of Private Business (FPB) has urged Ofcom to reject the plan, arguing that small businesses will feel the effects of the price increase more than most, particularly at this time of economic difficulty and high business costs. FPB also commented that most small firms were unaware of the proposals, despite the impact it will have on them.
In response Royal Mail has claimed that no final decision has been made, though Ofcom is expected to return its verdict in the next few weeks.
A spokesman for the postal service commented: “Royal Mail is awaiting the outcome of Ofcom’s consultation on its proposals for future regulation of UK postal services before announcing stamp prices for 2012. No final decisions have been made but we will inform customers of any changes as soon as we are able to.”
Photo by rebel rebel – CC
