Postal union leaders are expected to set dates today for national postal strikes which could cost the economy £1.5bn, according to the Centre for Economics and Business Research.

It's claimed online retailers could lose £220m and in the event of a strike, one in four business mail items could be sent through a different postal route.

Communication Workers Union bosses offered the Royal Mail a "peace deal" earlier this week – to cease all strike action in exchange for a rethink on its modernisation plans and a revised pay deal.

However the Royal Mail rejected this offer, saying it was merely new demands.

Further talks between the Royal Mail and the Union are expected this week, but the union only has to give 7 days' notice of a strike. So national disruption to the postal service could kick off as early as 22nd October.