Businesses demand a shake-up of postal services

19 December 2006:

The Federation of Small Businesses (FSB) http://www.fsb.org.uk has called for a sustained approach from regulators to preserve the existing levels of post offices across the UK and to improve the postal service offered to small business customers by Royal Mail. The survey of more than 3000 small firms across the UK found that post offices were vital to the survival of 82% of small businesses. It also found that the introduction of Pricing in Proportion (PiP) by Royal Mail has increased postage costs for 43% of firms and time spent on preparing the mail for 44% of businesses. Almost half (48%) reported that their mail arrives later than it used to before the Single Daily Delivery was introduced.

The survey of FSB members found that 88% of small firms send mail every day, 69% send invoices through the post and 87% of all mail is business mail. Either because they were not aware of other choices, or because competitors to Royal Mail were not interested in serving small firms, 94% of small firms still use Royal Mail exclusively.