Small businesses hit by postal charges
Jul 12 2002
Small businesses which receive fewer than 20 letters a day will be charged £14 a week to have them delivered before 9am, under proposals announced by Royal Mail’s parent group, Consignia.
The twice-a-day delivery service is being dropped as part of a restructuring aimed at saving the Royal Mail £350 million a year.
Pilot schemes will start next week in selected postcode areas. Those businesses receiving less than 20 letters a day will have one delivery between 9am and lunchtime. The scheme will be extended nationwide later this year.
Small business lobby groups have reacted angrily to the announcement. Businesses which receive fewer than 20 letters a day will have to pay around £750 a year if they want to receive the post before 9am.
The British Chambers of Commerce (BCC) has called on the post office to change the plans, as it fears they could drive small companies out of business.
‘The Royal Mail should not shift its problems onto small businesses. A cheque arriving in the mail before 9am or after noon can mark the difference between a company surviving or folding,’ said Sally Low, BCC head of policy.
While expressing some sympathy for the Royal Mail’s position, the Forum of Private Business (FPB) has expressed concern over the impact the charge will have on small businesses. ‘This poll tax on SMEs could inflict serious costs on the small business community. The decision by Royal Mail to rationalise its financial problems by adding further pressure on SMEs, following on from the closure of 1,500 sub post offices, is a serious threat to the economic role of SMEs in this country,’ says FPB chief executive Nick Goulding.
The pilot schemes will start in Northern Ireland, Edinburgh, Bow in east London, east Manchester, Sheringham, Llanelli, Newbury, Newhaven, Loughborough, Thirsk, St Helens, Halifax, Plymouth and Crawley.
For more information on the charges and pilot schemes, go to www.consignia.com.
(12/7/02)
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