news story

27th July 2007

MP Condemns Threat of Higher Postal Charges for Village Residents

Northavon MP Steve Webb has condemned plans by the Royal Mail to increase charges for business deliveries to people living in small towns and villages.

Under the plans for so-called 'zonal surcharges', the Royal Mail would charge large postal customers such as utility companies higher postage rates for delivering to rural areas. Over time there are fears that these charges could be passed on to consumers, leaving rural customers paying more for their services.

The proposal has gone before the regulator, Postcomm, which has indicated that although it is not minded to support the proposal it will be issuing a consultation document in August on which it invites comments.

Local MP Steve Webb is encouraging residents to register their opposition to these plans to make sure that the regulator rejects them when it makes a final decision later in the year.

Steve Webb said:

"Many of the costs of living are higher in rural areas, and the last thing we need is for market town and village residents to have to pay more simply to receive letters from big businesses.

"The Royal Mail should be a universal service, regardless of where you live in the country. It would be totally unacceptable to have a new tax on rural living.

"When Postcomm publish their consultation document next month I will be encouraging local residents to register their opposition to these divisive plans."

It has been estimated by the Mail Competition Forum (a mailing trade association) that around 43% of households in the Northavon constituency come within the area that the Royal Mail considers the most rural ("Zone D") and these areas would attract the highest surcharges.

The areas likely to be affected include parts of Chipping Sodbury and Thornbury as well as villages such as Charfield, Wickwar, Hawkesbury Upton, Wick, Almondsbury and Pilning & Severn Beach. It is also feared that the proposals could further undermine rural post offices if they reduce the volume of mail being handled in rural areas.