Regulator defied as Royal Mail plans price rise
Allan Leighton, the chairman of the Royal Mail, raised the stakes in his battle with Postcomm yesterday with plans to increase some delivery charges in defiance of Postcomm’s wishes.
Price rises are being imposed on airmail postcards, letters, printed papers and small packets. The cost of sending parcels weighing more than 350 grammes will also rise. Postcomm has said that it wants to curb prices on airmail and parcels to compensate for allowing the price of first and second class stamps to rise by 1p each. However, the loss-making Royal Mail has complained that any move on those services would cut Pounds 460 million from its sales.
The price increases, ranging from 1 per cent to 5 per cent, are controversial because they come just weeks before final pricing plans for Royal Mail are due to be announced by the regulator.
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