5p stamp price rise 'first effect of post Office privatisation'

Angus MacDonald condems another blow to small business by the coalition government

SNP Economic Development Spokesperson at Falkirk Council, Councillor Angus MacDonald has hit out at reports that the cost of a first class stamp will rise by 5p in April following a decision by Postcomm to allow Royal Mail greater commercial freedom.

The news follows hard on the heels of efforts by the coalition government to squeeze small businesses after revelations that Royal Mail is demanding a 20 per cent reduction in costs from small suppliers ahead of privatisation.

Councillor Angus MacDonald with the SNP's Postal Affairs Spokesperson Mike Weir MP

Councillor MacDonald, who is also the SNP’s candidate for Falkirk East at next May’s Scottish Parliament election said:

“It appears that small businesses are being forced to pay the price of privatisation with a further squeeze on their already tight margins as the coalition government try to make Royal Mail more attractive to a corporate buyer.

“Not only are small businesses likely to be those worst hit by privatisation, since they have few alternative service options, and are unlikely to be able to access special deals on bulk usage of postal services, but they are now expected to bear the brunt of the cost of reducing Royal Mail’s losses.

“And today we have the double whammy of a rise in the cost of first class post which is far in excess of inflation and totally indefensible. If allowed to proceed it will hit small businesses very hard. Unlike large companies, small businesses do not have the ability to access bulk mailing discounts and alternative services nor can they negotiate more favourable terms.

“This is yet another blow against small businesses from the ConDem government which is in stark contrast to the pro-business agenda of the SNP in government in Scotland over the past 3 and a half years.”

Copyright © Angus MacDonald MSP 2017

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