PRIVATISING Royal Mail could stifle business innovation and increase costs of business, it has been claimed.
Rob Crowder, chief executive of Rural Community Action Notts (RCAN) has hit out after plans were revealed to privatise the mail service.
Mr Crowder said: "It seems to me that businesses could well have to pay more to have their mail delivered and getting parcels from online retailers could come at a premium for householders.
"Rural entrepreneurs are already hampered by having low, or in some cases, no broadband speeds – and now this comes on top of all the problems we have in the rural economy already.
"The winning bidders will have to protect prices for 10 years and then it will be a free-for-all.
"The rural economy is already teetering on a knife-edge and I just have to hope that this won't be the final straw that pushes some businesses over the edge."
Announcing the plans on Wednesday, Business secretary Vince Cable said: "This is logical, it is a commercial decision designed to put Royal Mail's future on to a long-term sustainable basis.
"It is consistent with developments elsewhere in Europe where privatised operators in Austria, Germany and Belgium produce profit margins far higher than the Royal Mail but have continued to provide high-quality and expanding services.
"Now the time has come for Government to step back from Royal Mail, allow its management to focus wholeheartedly on growing the business and planning for the future."
