Postcomm has proposed a 2p rise on first-class stamp prices to be phased in by April next year. But the Direct Marketing Association has slammed the move, claiming it will hit DM spending. It argues that volumes would be hit and mailers would rein in other budget items.

But Postcomm has claimed that the price rise is modest.
"The rises in stamp prices are substantially less than RM wanted and a little more than we planned," said Postcomm chairman Nigel Stapleton. "But without a contribution from customers, RM's weak financial position would have put its ability to provide the universal service at risk."

But Corporate Mailing Matters director Martin Williams fears there could be a backlash from clients.

"Anything that puts postal costs up will make people think harder about the alternatives," he said. "It is likely to have an effect on marketing budgets."

But Lloyd James Group commercial director Jo Lloyd argued that it would not have an impact on the industry.

"Very few mailers are posted out on first class so it will have very little effect," she said.