UK first-class postage may rise to 39p
The price of first-class stamps would have to jump to 33p, and possibly 39p, if plans go ahead to open the market to competition, postal chiefs said yesterday.
Consignia, the holding company for Royal Mail and the Post Office, said moves to open a section of business post to competition next month would go further than the regulator stated and mean a Pounds 2 billion loss of half its market.
Postcomm, the regulator, had said that the first stage of competition would mean that a third of the market would open to rival businesses.
In its response to the Postcomm plans, Consignia said it would be unable to deliver post to all addresses at a flat rate. Stuart Sweetman, managing director for strategy and business development, said: “If the regulator has got his sums wrong, then it will mean the end of the one-price-goes-anywhere postal service.”
Consignia bases its estimated rise of a first-class stamp from 27p to 33p on the level of increase in Sweden, where full competition exists. Sweden adds VAT to postage and, if that were done in Britain, it would take the price to 39p.
Consignia would have to get price increases approved by the regulator, which would be unlikely to endorse a large rise. Graham Corbett, chairman of Postcomm, has indicated he would like price cuts.
