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Consignia, the loss-making postal services group, is to reactivate plans to raise the price of first and second-class stamps by a penny in an effort to offset an expected £750m hit on its operating profits from open competition.
The state-owned group, which yesterday confirmed plans to close up to 3,000 urban post offices, will warn its new regulator tomorrow that its plans to effectively liberalise the postal market by 2004 will knock £250m off its annual operating profits.

CONSUMER GROUPS reacted angrily yesterday after the postal group Consignia confirmed plans to close up to 3,000 urban post offices as part of a cost-cutting drive.
The closures, equivalent to a third of the urban network, will be accompanied by a pounds 200m government-funded compensation package.
Alan Barrie, executive director of Post Office Ltd, defended the cutbacks on the grounds that the 17,500-strong branch network was losing pounds 100m a year and would face even greater difficulties when the payment of social security benefits is switched from post offices direct into bank accounts next year. The move will reduce revenues by 40 per cent or pounds 400m.