VAT on Royal Mail services in 2011?

Here's a curious thing, buried in the back of the Budget document it says;

"VAT and postal A.96 - From 31 January 2011 VAT will be applied at the standard rate to certain postal services provided by the universal service provider (Royal Mail)."

Did the price of stamps and other stuff in the future just go up by 17.5% or more?

So much for his comment of "I have no further announcements on VAT"

NOTE: Currently Royal Mail services are zero-rated and exempt from VAT.