Consignia withdraws request for price hike

British post office, Consignia, has been forced into a climbdown over its request for a hike in the price of stamps. In April, just days after being granted a licence to operate as a plc, the company shocked regulator, PostComm, with a demand that both first and second class stamps go up by 1 p in October. PostComm had earlier said that it expected prices to be frozen for two years. Consignia later ‘suspended’ the application raise prices, saying it was due to uncertainty over when the government might take away its right to receive interest payments, worth £100 million a year. A spokesman for the post said: “Consignia’s ability to justify the price increase is constrained until the government has determined the future capital structure of the company.