Call to Ofcom to veto postal increases

Massive increases to the price of posting mail in the UK will harm small business and hasten the demise of the Royal Mail, according to a small business group.

In a letter to Ofcom, the Forum of Private Business urged the industry regulator not to allow Royal Mail bosses to go ahead with reforms which could drive the price of a second class stamp by as much as 50 per cent.

Ofcom is currently consulting on the proposals which are part of a huge shake-up planned by Royal Mail executives who say the changes will allow it to become profitable again, but could see second class stamp prices rocket from 36p to 55p.

Other proposals being considered are no-limit increases for the price of a first class stamp until 2018 which would not require Ofcom approval as per current rules.