Royal Mail price increases set to impact small businesses

[TrueBlueTerrier]

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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.”

[Lounge Lizard]

The Forum of Private Business (FPB) has urged Ofcom to reject the price increases, 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. But they don't take the trouble to suggest any alternatives, like stopping the parasite DSA companies fleecing Royal Mail, do they ?

[jobandfinishlol]

Totaly agree with you Lounge Lizard,these DSA comps are the preverbial fly in the ointment, true parasites and Royal Mails answer is ongoing price increases.This situation seems to be leading to a vicious circle where customers have to look for the most cost effective posting set up ,invariably DSA,losing more revenue for Royal Mail who counter attack with another price hike.This cycle is unsustainable and has to be broken somehow.
God Bless the EU.

[Mr Rush]

This situation seems to be leading to a vicious circle where customers have to look for the most cost effective posting set up ,invariably DSA,losing more revenue for Royal Mail who counter attack with another price hike.This cycle is unsustainable and has to be broken somehow.
God Bless the EU.

There's a very similar scam with the supermarkets: they pay pittance to local farms for milk (for example), who are then forced to accept subsidy from the EU (the Common Agricultural Policy) to remain in business, which is paid for by tax-payers who think they're getting a great deal in the supermarket. The supermarkets then funnel the profits into tax havens.