Rural areas 'hit hard by strike'

Rural and small businesses are set to be among those hardest hit by the postal strike according to the Federation of Small Businesses.

They say more than half of small firms rely on the Royal Mail to send over 80% of their business post.

The East Neuk of Fife is one of those rural areas affected by the postal dispute.

Local businesses are struggling as alternatives are too expensive.

Small businesses

Ken Lawson runs a guest house in Anstruther. He says running a business in rural Scotland is very different to managing one in the city.

"Suppliers all use Royal Mail because the alternative is too expensive"

"It's easy to deliver things around the city whether it be by a motorbike, courier or something like that and most people in the city are geared up to internet banking etc. Whereas in the country, it's still the old way of working.

"You get your invoices about six months after the job has been done from joiners, plumbers and things like that. They don't have the system in place like you do in the big cities."

Ken buys his supplies locally but also from small businesses further afield.

"Suppliers all use Royal Mail because the alternative is too expensive and courier companies will not pick up from the more rural parts of Scotland."

Cash flow

More than half of small firms rely on the Royal Mail to send over 80% of their business post according to research by the Federation of Small Businesses.

They say that cash flow is vital for their members and any delays in receiving cheques and orders could now tip some businesses over the edge.

Steve Blaney from the East Neuk FSB believes some businesses are in trouble.

"We have a couple of businesses at the moment that are waiting on big cheques coming in. They are tinkering on the brink of surviving and going.

"If they do not get their cheques by the end of the month they could go down.

"That's how critical it is for small business to get mail from the Royal Mail."

Difficult times

While tourist businesses here are hopeful they can build on their increasing visitor numbers, many other small businesses complain that times are difficult enough with late payers without having to worry about further delays caused by the postal strike.

The Royal Mail say the backlog of undelivered mail has risen to 35 million items.

They say they will be hoping for a breakthrough in the talks to prevent further strikes next week.