FSB calls for Royal Mail shake-up

The Federation of Small Businesses is calling for a shake-up of the service offered by Royal Mail to its members after research showed 82 per cent of small businesses felt post offices were vital to their operations.

The survey of 3,000 small businesses found that Royal Mail’s introduction of pricing in proportion, in which charges are based on the size as well as weight of items, had increased postage costs for 43 per cent of companies. About 44 per cent said the new pricing regime had also raised the amount of time they spent preparing post.

Clive Davenport, FSB trade and industry chairman, said: “In terms of paying bills and invoicing customers the postal service remains the only small business choice despite the increasing use of new technology. This is partly explained because of recent closures of high-street bank branches.”

The FSB survey found that 48 per cent of respondents’ post arrives later since the Royal Mail merged first and second posts into a single daily delivery in 2004 and 82 per cent said closure of their local post office would have a significant impact on their business.

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