Future of post offices ‘uncertain’
A new report from spending watchdog the National Audit Office has concluded that the long-term future of Britain’s post offices is “uncertain”.
It concludes that Post Office Limited, as a result of support from the Department of Trade and Industry (DTI) is now on a “sounder financial footing”.
But, the NAO warns that the long-term viability of many urban and rural post offices is less certain.
It suggests that there has been an historic over-supply of post offices in urban areas, meaning that many are forced to operate on low margins with low investment and are recording losses for the company.
The NAO casts doubt on whether the post office closure programme – 2,500 urban branches are set to close – will achieve its stated aim of producing a network of financially viable businesses.
It is not much more optimistic about the situation in the country, warning that the rural network is “heavily loss-making” and a “significant number of rural post offices are not viable businesses”.
The DTI is urged to consider the long term future of the rural network carefully, considering its subsidy to rural post offices is due to run out in 2008.
Auditor general, Sir John Bourn, said: “Since 1983 the number of post offices has dropped by 7,000 to around 15,000. The Government faces some difficult decisions if it is to maintain a viable network of post offices.
“Although the rationalisation programme has put the remaining urban post offices on a firmer footing, their future is not guaranteed and the DTI must stay alert to this. It must also co-ordinate Government policy decisions on the future of rural post offices based on a sound understanding and assessment of the options.”
The Communications Workers Union said the report helped its case for Government funding of Crown post offices – which were not covered by the report.
National officer Andy Furey said: “The CWU has always welcomed the DTI’s funding for rural sub post offices. What we cannot understand is how the Government can on the one hand appreciate the vital social role these branches play, and on the other totally ignore Crown offices – some of which are also in rural areas.
“Almost 900 Crown offices have been shut or sold off in the last 15 years. This trend will continue unless the Government invests in the network it is the owner of. It is simply unacceptable for ministers to sit back and do nothing while a public service is ripped from the heart of our communities.”
