Scotland's rural businesses are being hampered by parcel delivery charges and poor broadband, according to research by Citizens Advice Scotland.

One in five small and medium-sized enterprises (SMEs) said they “could not function” without the postal service with a further 72 per cent saying that the postal service is very or fairly important to their business.

However nearly one in four say they have to pay additional surcharges due to their location and over one in five experience delivery delays for the same reason.

CAS say in their new Delivering for Business report that a statutory telecoms consumer advocate should be appointed to represent the interests of consumers including SMEs.

They also call for “rural proofing” in general policymaking so that location is not an issue for SMEs.

Publishing the Delivering for Business report, CAS chief executive Derek Mitchell said: “The success of small and medium sized businesses is key to economic growth, particularly in rural areas where hospitality, agriculture and construction businesses contribute significantly to the financial health of their local community. 

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"But to flourish in more remote areas requires good digital connectivity and an effective postal system. One third of Scotland’s SMEs have told us that broadband is poor or ‘variable’ in their area; with this figure rising to 45% in remote rural areas. This simply isn't good enough if we want all regions of Scotland to prosper. 

"We will be sharing this data with the UK and Scottish governments and with postal service providers to inform future policymaking. Scotland needs postal and broadband services that are reliable, efficient and affordable." 

The report also states that one third of SMEs report a poor or variable broadband service, with the figure rising to 45 per cent in remote rural areas.
 

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