Magazine publishers express concern over Royal Mail price hikes

“The PPA has serious misgivings over Postcomm’s decision to allow Royal Mail the flexibility to double the permitted price increases on bulk mail. At a time when the Government is looking to the creative industries as a driver of economic growth, this is a shortsighted move."

He said that price increases were "imposing a penalty tax on magazine publishers who are being forced to pay for Royal Mail’s inefficiencies" and that the increases "will have serious implications for the delicately balanced economics of today’s magazine publishing environment".

McIlheney concluded that the proposed price rises could impact on literacy standards "since magazines play a proven critical role in developing literacy among the UK population".

He said the PPA were in agreement with colleagues at the Direct Marketing Association (DMA) that raising funds at the expense of businesses would be "counter-productive".

Postcomm have said the price rises should "help maintain the pace of the modernisation programme required to safeguard the provision of the universal postal service" while the Royal Mail claims it has been losing around 2.5p per item on the 6bn-plus bulk pieces of mail it delivers per year.