UK MAIL yesterday warned its margins would be eroded by above-inflation price increases being brought in by Royal Mail this month.
Royal Mail is putting up wholesale charges for bulk users of its delivery services by 20 per cent, on top of a 4p hike in the price of a second-class stamp.
Guy Buswell, UK Mail chief executive, said mailing costs for firms would “increase to an unprecedented extent”.
UK Mail, which handles 17 per cent of Britain’s post, relies on UK Mail for the “last mile” of deliveries – effectively the distance from the local office to the letterbox.
• Plans to transfer ownership of the Post Office from the government to a mutual have moved a step closer, after a new report yesterday outlined how the switch could be achieved.