(PRBuzz.com) April 11, 2013 -- According to reports from the campaign group that opposes Royal Mail privatization, first-class stamps could cost as much as one £1.
Save Our Royal Mail, has been set up by groups representing all of the countryside, as well as the elderly, smaller firms, and the blind, and as urged the Government not to rush into any selling of the mail. The group conglomeration fears that a possible spiraling of pricing increases are sure to occur if no longer regulated.
SORM has also added warning about privatization of the Royal Mail, saying it could lead to fewer deliveries within the countryside and "rocketing" costs for all small businesses. Such companies often still rely on mail in order to stay productive with larger competition.
The claims have been formed a day after Sky's City Editor Mark Kleinman revealed that Mark Russell would be allowed to take control of the plans that involve £4 billion privatization of Royal Mail.
Campaigners have issued warnings that free postal services for the blind, as well as others may be threatened under the new scheme, while free post service for the British forces could also be scrapped, making the Royal Mail's iconic red pillar boxes obsolete and lost in use forever.
Campaign Director Mario Dunn said: "Save Our Royal Mail is a broad-based and growing campaign.
"We want to take our message to the politicians - do not rush headlong into a sell-off if you cannot guarantee a privatized Royal Mail will constrain its prices and provide these services at their current level."
Still, the Royal Mail spokesperson played down the various concerns and considerable scare-tactics of the opposition. "Stamp prices, whether set under public or private ownership, are subject to significant competitive pressures.
"Customers have many alternatives to the post and there are now many postal providers. It is pure speculation to suggest that stamp prices could reach £1 in the next few years - in fact in 2013 there was no increase in the price of first class or second class stamps."
"Clearly, the rules governing the implementation of VAT are a matter for HMRC, not Royal Mail.
He added: "VAT exemptions for core postal service delivery products such as stamps, by universal service providers (USP), are in place in the vast majority of EU countries under the European VAT Directive.
"Under the Postal Services Act 2011 Royal Mail is the USP in the UK. The VAT exemption would apply regardless of whether Royal Mail was in public or private ownership.
"Similar VAT exemptions are in place for universal service providers in Germany, Austria and the Netherlands. In each country the USP is privately owned."
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