Rural businesses are hit by postal dispute and the threat facing post offices

Postal strikes across the country have hit rural businesses hard and look set to put a number of people out of business.

Two one-day strikes, as well as subsequent wildcat strikes saw postal services disrupted for over a week – causing rural communication networks to come to a standstill.

Charles Trotman, chief rural economist for the Country Land and Business Association, said the strikes had been devastating for rural business.

In the South West alone, the strikes are expected to cost the rural economy up to GBP 10 million, according to Tim Jones, chairman of the Devon and Cornwall Business Council.

Mr Jones said the strikes could not have come at a worse time after rural businesses had already been hit by foot-and-mouth restrictions, fuel charge increases and the recent Northern Rock credit crisis.

The problems faced during the strikes are just the latest in a long line of problems faced by rural communities.

Plans to close many rural post offices have been met by fierce opposition from those who rely on the service.

Mr Trotman admitted that a compromise had to be found so that the service could continue to run as well as offer value for money.

One idea he and others have suggested is opening one-stop-shops for all Government services in rural areas, offering a postal service as well as assistance with tax and other issues.