Post costs have SMEs 'over a barrel'

Small businesses are being hit by Royal Mail's decision to introduce a flat rate for fewer weekday collections.

That is the argument of the Forum of Private Business (FPB), which believes the decision to switch morning collections at an annual rate of £280 to one per day collections at £450 annually is unfair.

The change in price has hit small businesses particularly hard due to the current economic climate, which has seen private firms combating inflation in lending rates.

The owner of office stationary suppliers Britsales Business Supplies said: "The collection service was more convenient than having to send a member of staff to the nearest post office. We only have a few employees, so this is not an option."

"This is an additional cost when I can least afford it - Royal Mail has small businesses over a barrel."

Small businesses that require their post to be collected by Royal Mail at a specific time must now pay an additional £750 per year.