Restore postal services for small businesses, insists FPB

6 May 2008

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Following a report on the shake-up of the UK's postal service, the FPB is urging the Government to restore the essential services that have been lost for many small businesses.

The process of closing of more than 2,500 post office branches across the UK has already disrupted vital lines of communication for many small firms, costing them money. The independent review, which was launched by the Department of Business, Enterprise and Regulatory Reform (BERR), revealed that, where large companies have clearly benefitted from ‘liberalisation', small businesses have not.

"The report appears to substantiate fears that the postal services relied upon by many small businesses, particularly those in rural areas, have been critically eroded," said the FPB's Chief Executive, Phil Orford. "Following the announcement that so many branches are to close, it is important that these services are restored as quickly as possible, and that suggested measures, such as locating post offices in alternative locations and introducing mobile units, are put into practice as a matter of urgency."

The report said that large businesses have gained from greater choice, lower prices, and more assurances over the quality of mail deliveries due to the changes. However, there have been ‘no significant benefits' for smaller firms, which have no choice over their provider and pay higher stamp prices, according to the report.

The Post Office is selecting the branches it wants to close using the Government's ‘national access criteria', which includes the stipulation that 95% of a postcode district's population is within six miles of a post office. The FPB is warning that religiously sticking to an approach based on population levels could fail to meet the individual needs of local communities – including the specific services required by small businesses.

The FPB believes that the traditional service offered by Royal Mail provides members with better value for money, and agrees with the review panel that introducing ‘Pricing In Proportion', based on the weight and dimensions of a package, has made the situation worse for many business-owners. A survey carried out by the FPB in 2006, when the closures were announced, revealed that over 60% of respondents feared that PIP would increase their costs.

In 2007, FPB member Rosemary Parr, of All About Pictures in Kings Lynn, tried to send an urgent package to a customer in London. She was taken aback by the sight that greeted her when she followed her husband and business partner, John, into the post office.

"He was holding the parcel and a tape measure and two women on the other side of the counter were holding onto the end of it," she recalled. "They said it was two centimetres too long to send by guaranteed delivery. When I suggested we send it first class I was told that it could be sent back because it was too big. I blew a fuse."

The review panel's final report is expected to be published in the summer.

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Restore postal services for small businesses, insists FPB

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