The proposed part-privatisation of Royal Mail could lead to service cuts, it has been claimed.

Consumers across the UK may need to look for post office alternatives if the proposed privatisation of Royal Mail goes ahead, according to a leading trade union.

Earlier this week, business secretary Lord Mandelson told the BBC Politics Show that the government is committed to selling a 30 per cent stake in the organisation to the private sector.

However, the Communication Workers Union has warned that it could lead to an increase in prices and a reduction of services.

A spokesperson claimed: "It could see further closures because the post offices' network directly relies on the Royal Mail for at least a third of its income," a spokesperson claimed.

"If you actually divorce the Royal Mail from the post offices' network you are going to undermine a lot of the funding stream that the post office gets."

Article Added: 02/06/2009 09:27:41