Postcomm has said it is "minded to accept Royal Mail’s request" to increase the price it charges to businesses and for giving DSA competitors access to its network, by as much as 15%.

Lance Hill, group sales and marketing director at 4DM, said the decision is "clearly bad news" for business and consumers alike. "It will put further strain on clients’ marketing budgets, which may drive some away from direct mail in some shape or form," he added.

"The reality is that the so-called modernisation is years too late and any privately run business would have gone under and deservedly, quite frankly."

James Portsmouth, group operations director at Inc Direct agreed, saying. "I think anything that involves costs increasing for the end user can only be bad news for our industry as it could ultimately drive people to look to other mediums for their advertising spend."

However, Lucy Edwards assistant managing director at Howard Hunt, defended the move. "We’re hoping this will accelerate clients moving into better-targeted direct mail, which – although it will potentially mean less print – will result in more timely, relevant and effective campaigns".

She added: "So while volumes may dip, ROI will go up and, in the end, that will benefit the sector. Ultimately, our industry needs a strong and competitive Royal Mail and they need to modernise and become more efficient to get there."