The Royal Mail issued a stark warning today that plans to freeze its prices over the next five years would lead to the postal group's 'inexorable decline' and threaten its ability to delivery letters to every address for the same price.
The organisation attacked proposals by industry regulator Postcomm which would only allow the price of a first class stamp to rise by 4p and a second class stamp by 2p up to the year 2010.
Postcomm said its proposed price caps were 'challenging' but insisted they offered customers a better deal and would secure the so-called universal service, under which the Royal Mail delivers post to the UK's 27 million addresses for the same stamp price. Latest News index
Contact the newsdesk