Following a report on the shake-up of the UK's postal service, the Forum of Private Business is urging the Government to restore the essential services that have been lost for many small businesses.

The process of closing of more than 2,500 post office branches across the UK has already disrupted vital lines of communication for many small firms, costing them money.

The independent review, which was launched by the Department of Business, Enterprise and Regulatory Reform, revealed that, where large companies have clearly benefitted from liberalisation, small businesses have not.

"The report appears to substantiate fears that the postal services relied upon by many small businesses, particularly those in rural areas, have been critically eroded," said the FPB's Chief Executive, Phil Orford.

"Following the announcement that so many branches are to close, it is important that these services are restored as quickly as possible, and that suggested measures, such as locating post offices in alternative locations and introducing mobile units, are put into practice as a matter of urgency."

The report said that large businesses have gained from greater choice, lower prices, and more assurances over the quality of mail deliveries due to the changes. However, there have been no significant benefits' for smaller firms, which have no choice over their provider and pay higher stamp prices, according to the report.

The review panel's final report is expected to be published in the summer.

9:00am Friday 9th May 2008

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