Local Post Offices

14:59:00

I beg to move, That this House has considered the future of local Post Office services. I am grateful to everyone for attending this debate on a Thursday afternoon on post offices and their vital role in all our communities across the country. Post offices have long been at the heart of our communities. They provide essential services, support local businesses and serve as vital socioeconomic lifelines, but in too many areas across the country, including my constituency, we face uncertainty over the future of those post offices and are already seeing the erosion of far too many. Post offices contribute an estimated £4.7 billion annually to the UK economy. According to the Post Office, their presence generates an additional £3 billion in spending for the businesses that surround them. In a town like Wellington in my constituency, a post office could add around £1 million to the local economy. Small businesses across the country rely on post offices for banking, cash deposits and parcel services. Nearly a third of small and medium-sized businesses use the post office at least once a week. Of course, the benefits of post offices are not just economic; they remain a lifeline for many, particularly older and more vulnerable people, who rely on post office services to access their pension, send mail and parcels, pay bills, and stay connected. I hear from many of my constituents how much they value our local post offices, and that those post offices provide far more than just postal services.

I congratulate the hon. Member on bringing this important debate. My constituents are served by Crown post offices in Brixton and on Lordship Lane in east Dulwich. Both those town centres have effectively seen the withdrawal of high-street banks. Would he agree that the erosion of high-street banking services places an even greater emphasis on the role of post offices, and that the Government need to intervene to stop the further round of Crown post office closures if we are to see the banking hubs commitment met across the country?

The hon. Member is absolutely right, and I will emphasise that point later, because the destiny of banking hubs is wrapped up with that of post offices. Post offices are the nucleus of a town centre, and once they are gone, it undermines the town centre.

Following on from the intervention of the hon. Member for Dulwich and West Norwood (Helen Hayes), I represent Tiverton and Minehead, a very rural constituency. Dulverton is a classic example of what we are talking about. The farmers used to come down from Cutcombe market, after they had sold their cattle and sheep, and deposit their money in a bank or post office in Dulverton. We just about have a post office there, but no banks. Does my hon. Friend agree that post offices and banks are two sides of the same coin?

I agree with my hon. Friend. I will comment on that aspect of banking later. I pay tribute to the friendly and hard-working staff in my local post offices on Station Road and in Staplegrove, and in other post offices throughout the constituency. The North Curry post office, with its amazing postmistress, contributes every year to the “Christmas in the Square” event for the village charity and has raised £1,500. These are real community institutions. Their being in our villages and communities, where they offer a warm, friendly welcome and act as a community hub, is important to many people and must not be undervalued.

The hon. Member makes an excellent point, and I think the nub of his speech is that post offices are not just a banking facility or just a post office; they are a real community hub. I think about the ones in my constituency that I have visited recently—in Ramsden Bellhouse, on Whitmore Way in Basildon or the brand new one on Billericay high street. That is exactly what they are: places where the entire community comes together.

The right hon. Member is quite right. I know Billericay and its post office, and I certainly support his remarks. Post offices are simply too important to be lost, and we have to ensure that they are not lost in towns like Wellington and Taunton, and elsewhere across the country. Too often, there are deep concerns about the future of local post offices. Today’s announcement about changes to the Royal Mail universal service obligation adds to that uncertainty, creating further pressure on an already fragile network. It is disappointing to see that obligation weakened, with potential knock-on effects on the viability of post offices. That makes it even more important that post offices continue to play a role all throughout the week, in selling stamps and providing postal services, even if deliveries are being cut back.

I thank the hon. Gentleman for taking my intervention and for the points that he is making. In response to a question I asked, the Government said that more than one in 10 post office services are not provided in what people would recognise as a post office. Some services are provided out the back of a van for a few hours a week, but they are still held up as complete post office services in the figures on post offices and how many people access them. Does he agree that we must provide complete post office services in all the communities that need them?

I agree with the right hon. Gentleman. There is a risk that the statistics are somewhat skewed by the fact that a parcel drop-off point or a van that visits occasionally may be considered post offices.

I thank the hon. Gentleman for his generosity in giving way to a number of Members during his important speech. On the proposal to replace Crown post offices, does he agree that franchised post offices are no substitute? In fact, that is a huge risk. WHSmith, which often takes on the franchises, announced this week that it is closing 17 of its high street branches. The move to franchises could be one step away from the complete loss of post office facilities.

Indeed. I think the hon. Member had read the next sentence of my speech, which was about the post office branch housed in WHSmith on Fore Street in Taunton. That business is potentially up for sale, which poses risks. The loss of such post offices would leave a huge gap across the country, particularly in county towns like Taunton. In the course of his work, will the Minister get concrete assurances from WHSmith that post offices in its stores will be retained following the sale? It is important that the Government get assurances from WHSmith on that point.

I thank my hon. Friend for securing this important debate. The distinction between Crown post offices and franchised post offices cannot be drawn heavily enough. In my constituency, we lost Crown post offices in Newton Abbot and in Dawlish, and the one in Teignmouth—which I believe is the last in my constituency; all the rest are franchises—is now under threat. Does he agree that the franchise system can provide a useful service but is absolutely no substitute for the full Crown post office service, which must remain?

I agree. I am sure that the Government will say in due course that, whatever its exact business model, a viable post office is what matters, and there would be some truth in that, but a secure post office, established for the long term, is what really matters. The worries we hear from across the House and the country are not without foundation. We have seen worrying closures across the country. Notably, as has been mentioned, there was a recent consultation on the closure of 150 post offices. The loss of branches means that fewer communities can access vital services. House of Commons data shows that the number of post offices is rising overall, but in the south-west, which has lost more post offices than any other region in England, it is falling. Wellington in my constituency lost its post office in 2019, and we can see the damage caused by that loss. Wellington is not a small town; it has 15,000 residents and is growing fast. Its population has grown by a third over the past two decades according to census data, and around 1,500 new homes have been built there in recent years. It also has a proud history as the home of Fox Brothers & Co, which has been manufacturing the finest flannels and fabrics for over 250 years and also owned its own bank—the Fox bank on Fore Street was the last bank in the country to issue its own banknotes. It is unacceptable for such a town to have no main post office. Losing the post office in 2019 has been a real blow. One constituent told me that he finds it “totally baffling why Wellington Post Office was ever closed”. It is particularly difficult for those without access to a car to visit the nearest alternative at Rockwell Green, a village several miles away. If they do, residents often find that the sub-post office is oversubscribed, with queues out the door. As a small village post office, it was only intended to provide for small numbers, and when it is open, parking has become a bit of a nightmare.

I was very pleased to support the hon. Gentleman’s application to the Backbench Business Committee for this debate. Does he agree that Crown post offices are one of the last bastions of the civil service in local communities, as they are not centralised? They provide good jobs in places like Wellington in his constituency, and they give support to communities that often have an older population. They have an expertise that franchises simply cannot provide.

The hon. Lady makes a very good point, and I am extremely grateful to her for helping us to secure this debate. Post offices act as hubs for a whole range of services, and they could arrange for a range of other public services, and often do, which is why a secure, proper post office is so important. As I say, the nearest post office to Wellington is some miles away and very difficult to access. As hon. Members can imagine, there was great relief when Wellington residents were told that they would be getting a new hub opened by an organisation called the Post Office, staffed by staff working for the Post Office, and that there was to be a logo outside the building with “Post Office” written on it, but they were disappointed to find, when they went inside the building, that it was a banking hub that does not provide any post office services. Frankly, people feel misled and let down. Will the Minister instruct the Post Office to review the case for granting Wellington post office the status of main post office? I am convinced from discussions with franchise holders that that would be enough to secure one for Wellington. As we can all see, in this case, there is an obvious and straightforward solution: we should allow banking hubs to offer postal services. There is no fundamental reason why they cannot. They already have post office tills and post office systems. They are run by postmasters and postmistresses, and staffed by post office staff. The one in Wellington even has two banking desks and space for a third desk, presumably awaiting a post office counter. That would be a very good use of the remaining space in a building with “Post Office” written above the door. Perhaps most importantly, having spoken to post office staff, I know that they would be very keen to offer such services in banking hubs. The issue lies simply in such arrangements not having been included in the agreement on banking hubs between the banks, which fund them, and the Post Office, which provides those services. It is not a hugely complex problem. With a bit of effort and ingenuity, which I am sure the Minister and the Government have, this could be overcome, and the system could be made hugely more efficient. There are 76 banking hubs in the UK, and in this way we could significantly increase the provision of post offices at very little cost. Will the Minister ask his Department to develop incentives for banking hubs to offer postal services, especially given that they all have the “Post Office” logo outside the door, even when they do not provide any postal services. To conclude, post offices are vital hubs in communities throughout the country, particularly for those in need and at risk of exclusion. The loss of the post office in Wellington, such a significant market town, has really hit the town centre badly. I know hon. Members will have their own examples of the importance of their local post offices to their communities. I look forward to hearing their speeches, and maybe to intervening on them. It is vital to ensure that substantive towns and communities such as Wellington do not lose their post offices altogether. In short, post offices are too important to be left to uncertainty. The Government must act now to safeguard these vital institutions, ensuring that towns, such as Wellington and so many more, do not remain without essential services. I urge the Minister to take tangible steps to secure the future of post offices before more communities are left without them.

Order. I am imposing an immediate six-minute time limit so that everyone can get in.

15:14:00

I commend the hon. Member for Taunton and Wellington (Gideon Amos) on securing this important debate. I think that most Members and most people are pro-post office. After all, post offices are part of the fabric of our nation. Many Members of my age were brought up on Postman Pat and his black and white cat. It would not have been the same without Mrs Goggins at the local post office. The Leighton Buzzard post office first opened its doors at its current location near All Saints church back in 1887. We all recognise that a lot has changed in the last 137 years, and since Postman Pat hit our screens in the 1980s. I used to queue at the post office to get my car tax. Emails have transformed how we communicate. TV licence sales have moved online or to phone or direct debit. What has not changed is the way that post offices foster a sense of community pride. Half of UK consumers say that their local post office creates a sense of belonging and community identity. An Association of Convenience Stores survey ranked the post office third for having a positive impact on local communities. Post offices also drive footfall to our high streets because when someone goes to the post office in the town centre, they often spend money elsewhere. More and more, post offices support e-commerce, and they are important to small businesses, half of which use them at least once a month. Increasingly, they are a vital means of accessing cash. Since 2015, my constituency has lost 60% of its bank branches. In recent months, two more high street banks, Lloyds and Halifax, have left Leighton Buzzard town centre. In September, when Halifax announced its closure, it was explicit that it expected the post office down the road to take up the slack. Whether that will be possible is a question I will turn to shortly. I was proud to stand on a Labour manifesto that committed us to strengthening the post office network. I welcome the Government’s £37 million investment to support post office branches, along with the £20 million boost to sub-postmasters’ pay and the plans to publish a Green Paper seeking public views on the future of the Post Office. This all comes at a critical time. The 100-plus-year-old Leighton Buzzard post office is a Crown post office. The desire of the Post Office to move to a fully franchised model is not new. It has been on the cards for some time, but it is causing understandable concern for local people who deeply value the service that their post office provides, for all of the reasons I have outlined. I welcome the expressions of interest in taking on those Crown branches. Although not all of those applications will be viable, it is encouraging that third-party operators are willing to step in, potentially integrating retail elements to make these branches more financially sustainable. However, as my hon. Friend the Member for North Durham (Luke Akehurst) mentioned, the recent announcement by WHSmith, which hosts around 200 post office counters, has raised concerns about whether third-party takeovers truly are a long-term solution. I would be grateful for the Minister’s views on that. I would also be keen for him to explore with the Post Office whether there is merit in treating Crown branches where it owns the freehold of the building differently from those where it leases the premises. Let me turn briefly to the related issue of postboxes. Some new developments simply do not have them. That means that someone who lives in Bidwell West would have to go on a half-hour hike to post a letter. The law states that residents should be within 500 metres of a post box, but that is simply not happening. Perhaps the Minister might raise that with the Secretary of State for Housing, Communities and Local Government, to ensure that housing developments include post boxes as standard. After all, letters are vital for a thriving postal service. The Post Office is a national institution. It brings essential services to countless communities, whether sending a parcel, withdrawing cash or topping up an electricity meter. It supports local businesses, high streets and local identity. Yes, it must change, but it must not wither. Local people must enjoy a first-class service.

15:19:00

In September 2021, Plymstock post office closed. It was part of the collateral damage of the closure by Morrisons of more than 80 newsagents. It was a legitimate business decision no doubt, but it highlights the issue of the post office franchise model. Those businesses just disappeared from the high street. What followed was a public petition, which I started. There was huge public disappointment, as older populations are used to using cash. The postmistress of the next nearest post office wants to retire, which leaves just one bank with one cash machine. The next nearest cash machine is 10 or 15 minutes’ walk away. Importantly, this was the loss of an anchor at a shopping centre that is vital for the local community. Working closely with the Post Office and local businesses, we sought to secure a new post office, but it is a challenge to make the franchise business model work. That will be even harder now with the employer increased national insurance contributions that businesses face. I raised this matter with the Minster today and he gave me a helpful answer. He mentioned the increase in the sub-postmaster pay offer, but there remains the issue that we are not replacing closing post offices on a like-for-like basis. Plymstock had a three-counter model, which the Post Office has offered to replace with a local franchise. It is offering just £15,000 to £18,000 a year to run that service within an existing or proposed business. We have to add on to that rent, business rates, staff, and set-up and running costs, because, at the moment, there are no businesses on the Broadway, where the post office was located, able to take on that service. There is also a challenge with the franchise model, in that it is often not possible to tag on additional services at the beginning that would make the business more profitable. For example, passport processing is not always offered at the start, and those extra services can often be the difference between a business model that will work and one that is unsustainable. Ironically, on 22 May, the day the general election was called, I met again with the Post Office—some three years later—to discuss the issue. The Post Office raised with me the statistics on what was needed. It thought that the use of a post office in the area would increase over time, but it would not take into account the fact that a neighbouring postmistress was seeking to retire. Therefore, the data showed that the area did not need anything more than a post office local. All it took was a tiny bit of horizon scanning to realise that there would be that need and that demand shortly. We got stuck in a Catch-22 situation. The Post Office reassured me that it had further people interested in running the post office, but, nearly one year later, nothing has come to fruition. The fight continues. As has been mentioned by other hon. Members, there is the option of banking hubs. The work of the Conservative Government to trailblaze this modern solution for communities has helped remarkably, and I am sure that we will hear lots about that this afternoon.

To reinforce the point that the hon. Member for Taunton and Wellington (Gideon Amos) made, there is a real concern that communities that are looking to have a banking hub do not have a functioning post office in the way that we would understand it. Does my hon. Friend agree with me that the arrival of banking hubs is actually the opportunity to put a post office back into those communities as well?

I absolutely agree with my right hon. Friend. I think that all of us in this Chamber will agree that having a post office within these banking hubs is vital. We have seen 76 hubs open across the country in the last few years. Clearly, there is an appetite and a need for them, but it does not make sense to the public, as has been alluded to, that they can pitch up to these places with a post office sign outside, but they cannot even buy a stamp inside. I do hope that that can be rectified. The other challenge is that an area cannot have a banking hub while a bank is still present. Perhaps that is the silver lining to yesterday’s announcement that the Lloyds bank in the same location, on Plymstock Broadway, is closing in November. That will be a massive hit, as it has the only cash machine for the entire community. However, as I have been saying to my constituents, perhaps the silver lining is that we will see more banking available and, if the Government heed our calls today, that future post office as well. Perhaps we have to circumvent the system to get what we want. It would mean that we can now explore a banking hub and retain those banking services. Clearly, there is a long way to go. I am sure that there are Members in the Chamber today who have secured banking hubs. I am told that it takes a big fight, but most of us are here because we are campaigners. Within an hour of the announcement of the closure of the Lloyds bank, we went out to the press, and we will do all we can to get a banking hub. However, I want to be able to reassure my constituents that this will solve the lack of a post office as well, so I do hope that we can see that policy change. There is a long way to go: we have to secure a venue, an operator and that policy change to see our post office services return. Since I shared the idea yesterday, there has been huge local interest. People are really getting the idea of a banking hub—they are on board; it is what the community wants. I have had two conversations already with potential operators, one of whom I know runs a service in a neighbouring constituency and is doing a really good job there. So we have the interest; we have businessmen and women who want to do this. They have not been able to deliver it on the franchise model, but it seems that they can deliver it on the banking hub model. We want to see this idea delivered, because even the shopping centre knows that, in order to get the footfall for all the other local businesses, having a bank and a post office for access to cash is vital. Even the local library needs that cash access, and if it is not available, there is going to be a problem. Local people need these vital services and amenities, and that is why we need to secure a banking hub. I say to my constituents, particularly those in Plymstock, that they have my absolute commitment to fighting for this. I would add that we have some fabulous small community post offices in our villages; it is not all a bad news story. The Newton Ferrers shop, for example, has a fabulous post office counter, and attempts are made right across our constituencies to deliver these services for our constituents. However, where there is a problem like the one we are facing today, with closing banks and closing main branches, we do need to step up and take action. To close, I will ask a few questions of the Minister. I have highlighted the reality of the current post office offer and, as I said, it is not all bad. He has kindly said that I can share some details about my constituency with him, which I will do, but I think it would be good to get the answers on the record in the Chamber. Does the Minister accept that downgrading a service from a main branch to a franchised local service hinders the replacement of post office services? Will he explore the fact that the current Post Office dataset does not allow for what will happen in the future? If a retirement is coming down the road, we should be able to business-plan around that and at the moment we cannot. Can the Minister reassure the House that he remains committed to delivering banking hubs, and say whether will they will incorporate postal facilities so that we can deliver for our constituents?

15:26:00

I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing today’s debate. This is an important issue for constituencies across the UK, as has been highlighted by contributions from all parts of the House, but it is a particular concern to constituencies like South East Cornwall, which faces the potential closure of our Liskeard post office. If that were to go ahead, it would not just be the loss of a shop; it would be the loss of a vital service at the heart of our community. As the daughter of a postman, I know just what a hard and important job it is that they do. For many people in rural areas like mine, the post office is more than a place to send letters; with the loss of high street banks leaving only one provider, the post office has become a financial lifeline, ensuring that residents—especially older residents or those without online banking—and small businesses can access cash and essential services without having to travel for miles. Without a clear alternative in place, that represents a real challenge. For many in rural areas like mine, reaching the next nearest branch is simply not practical. If these closures continue, we must ensure that further banking hubs are established so that rural communities are not left behind. Driving growth is a key aim of this Government and I welcomed the £28 million investment in Cornwall outlined in the Chancellor’s statement yesterday. Long-term growth cannot happen without the basic services that underpin our local economies, and Labour was elected across the UK in rural, coastal and urban areas alike because people want practical solutions after 14 years of decline. They want to ensure that communities are not cut off from essential services, and I look forward to working with our Government to achieve that. My goal is to make the lives of local residents in South East Cornwall easier and more prosperous. That means protecting local services, ensuring accountability and delivering real opportunities for growth in towns like Liskeard. I urge the Government to ensure that rural communities are not left stranded and to guarantee access to essential banking and post office services, as I am sure they will.

15:28:00

I congratulate my hon. Friend the Member for Taunton and Wellington (Gideon Amos) on taking the initiative to secure time for this debate and on the way in which he opened it. We are all familiar with the old maxim, “If it ain’t broke, don’t fix it.” I have lost count of the number of post office debates I have taken part in over the years, and it seems to me that as far as post offices are concerned, the maxim that has governed the thinking of Governments of all colours is, “If it ain’t broke, keep reforming it until it is.” The fundamental problem is that there has been an incoherence of approach within Departments. On the one hand, we have heard—I suspect we may hear similar things from the Minister today—Ministers stand at the Dispatch Box saying that the post office is a brilliant institution and it can be the front office or front desk for Government services in communities across the country. The next day, we will have another Minister standing at the Dispatch Box telling us that access to Government services will become digital by default. Unless we decide exactly what role we expect our post offices to perform in our communities, we cannot be surprised when they fail to thrive and then wither in the way that they are doing. It is more than 20 years now since the Department for Work and Pensions thought it could save money by driving people away from getting pensions and other benefits from their local post office. Doubtless that was a saving for the Department for Work and Pensions, but it has just meant that the Department for Business and Trade or whatever we call it these days has had to put more money in through Government subsidies. I hesitate to predict the future in politics at all these days, but one day, when we have finally turned the key to lock the last post office in the country, some bright spark in Downing Street somewhere will come up with a policy paper saying that we should have a hub in every community where people can access Government services and meet their postal needs, their banking needs and all the rest of it, and in that way we will end up reinventing what we have reformed to the point of destruction. The Post Office and how it interacts with the sub-postmasters has not always helped in that respect, including the innovations that it has brought, such as the pick-up and drop-off initiatives. In my constituency, it is not the sub-post offices that are given the contract to do the pick-up and drop-off points. If the Post Office at the heart is not able to support sub-postmasters at the frontline, we frankly cannot be surprised if they start to fail. In particular, I want to talk about the Post Office’s approach to the closure of Crown branches. We see that in my constituency, where the last Crown post office in Kirkwall is listed for closure. The way that has been done by the Post Office has been nothing short of a disgrace. It has been totally lacking in respect for its employees and the communities that the post office is there to serve. At a time when we might have hoped that the Post Office would want to demonstrate a change of culture—for reasons we have debated often enough—we see it still behaving in this way in my community. It makes me think that all the fine words about changed culture at the top of the Post Office are simply meaningless weasel words. I have seen similar situations before. We lost the Crown post office in Lerwick in Shetland a few years ago. It was taken out and folded into a local newsagent service. For all the promises given about maintaining services, in fact the community was left with a much inferior service at the end of the day, despite the best efforts of the newsagent who got the contract. If we are to see these changes in Kirkwall, we need to know first of all that the same range of services will still be available as there are from a Crown post office. That includes vehicle licensing, currency exchange and passport checking—all those things should still be available. Just as important as the range of services is the question of the physical infrastructure. People want a stand-alone post office to offer a level of service of the sort they get with a Crown post office, especially when we are encouraging banking into them. That is a highly personal service for many people. They do not want to be doing that next to somebody buying a tin of beans and their weekly paper. The size and availability of any post office that is to replace the one that the Post Office wants to close in Kirkwall is critical. We do not want people queueing around the block at Christmas when the post office is at its busiest, standing in the rain, sleet and snow to get their postage done. The size, the range of services and the quality of service have to be at the heart of anything that comes from the Post Office by way of revision. That is the basis on which we in my community will be judging any proposals that it comes forward with.

15:34:00

I was pleased to support the hon. Member for Taunton and Wellington (Gideon Amos) in securing the debate. It was not the first time I helped him as, in a funny quirk of fate, I house sat for him more than 20 years ago— I think it was 22 years ago, but he is welcome to correct the record if I have got the dates wrong. I thank my London Bridge post office manager Priya and her dedicated team, including Clive and the Communication Workers Union members whom I am proud to serve. They in turn support and serve the London Bridge and Borough High Street community in extremely busy circumstances with massive footfall. That is why there is so much concern about the branch, as demonstrated by the petition to save the London Bridge post office started by London Bridge and West Bermondsey councillors Emily Hickson, Sam Dalton and Sunil Chopra. Hundreds of people have already signed that petition, which is on change.org, should anyone want to add their signature. I went to the branch two weeks ago to meet the team and saw for myself how busy and loved it was. My constituent Mary—a lovely older lady—was there paying her rent at the time, but it is not just old ladies using post offices. This post office demonstrates how a diverse range of post offices is affected across the country as this branch is hugely busy and serves a massive and vibrant business community at Borough Market and around London Bridge. Of course, it also has London’s fourth-busiest train station right on its doorstep, providing commuter customers on Borough High Street. I visited specifically because of the question mark over the branch’s status. I thank the Post Office for answering some of my questions and for joining me on that visit, but it is disappointing that the branch is in that position, not least because we have a new ministerial team, Government Ministers have stated that there will be £50 million of additional funding and there remains a commitment from the Government to ensuring that every community has access to a post office branch, which is incredibly welcome. I am proud to have stood and won last year on a manifesto that said Labour would look for ways to strengthen the network in consultation with sub-postmasters, trade unions and customers. I am glad that the Government formally recognise that “The UK-wide Post Office branch network is an essential part of the UK’s economic infrastructure, supporting high streets” and “businesses”. That is incredibly refreshing after years of mismanagement and mixed messages from mixed Ministers from two different parties since 2010. It is really useful to see the Minister in his place. We may disagree on one issue during the six nations, but he has been a massive champion of post offices and has said on the record that the Post Office should do more when it comes to providing banking services. He has been a doughty champion for the Co-operative party and a champion of post offices having a broader banking and financial footfall, whether that be through a credit union or banking. I hope to hear more from him on those issues. Like posties, he now has to deliver in office as a Minister. [Hon. Members: “Oh.”] Thank you. I hope that we will hear when the Green Paper will be published. I think the aim is by the end of July. I hope that it will cover Link and the access to cash campaign, which is already part of that discussion, and that there will be space to talk about the future of business rates for post offices and whether there could be a community interest exemption. I want to flag up a couple of concerns about how the London Bridge branch has been handled by the Post Office. It has an incredibly small team of less than 10 full-time equivalent, and they are incredibly busy, but they have met every target set by the Post Office, including a currency transfer increase last year of more than 20%—we are talking about millions of pounds there. The team have taken on additional services where possible, but those services they have lost have been the responsibility of the Post Office nationally and not the local branch. Sadly, they feel blamed for national Post Office failures. Rent is also not the local branch’s responsibility; it does not determine the rent that it pays for its prime Borough High Street location. It is disappointing that the Post Office did not seek a rent reduction in 2020. I saw how, during the covid crisis, rents for commercial and residential premises fell for the first time in the 20 years I have lived in the borough. However, the Post Office failed to negotiate or seek a reduction. That is not the responsibility of the individual staff, who feel they are now being held culpable for a failure that sits elsewhere. It is hard to imagine an equivalent site locally that would be cheaper. If the branch moved away from its high street location, it would lose business and commuter footfall, which could reduce turnover. Those making decisions need to be mindful of that. As was mentioned by the right hon. Member for Orkney and Shetland (Mr Carmichael), there is a lack of respect shown to customers and the workforce in the handling of this. Specifically on this site, the Post Office website said that an alternative provider was available on Blackfriars Road. Well, the Post Office shut that post office two years ago this month. It was supposed to reopen—the Post Office said it had bidders for it last summer—but, since my visit two weeks ago, the Post Office has now stated that it will not reopen the Blackfriars Road site at all, which is a massive disappointment for many in SE1 and the local area. The failure to communicate that—again, not a local responsibility—shows a lack of respect. The Post Office is supposed to follow principles of community engagement in how it handles these issues, but that has not been the case in Blackfriars. It must not happen again. For people worried about that specific site, I want to flag up that there is a lot of interest in running it with an alternative provider. However, that must not come at a loss of services or a loss of rights for the workforce that the state picks up down the line, and all costs must be taken into account. When more is known—we think that will be in April—I will organise a public meeting with local representatives of the Post Office, the CWU and others, which I will advertise as soon as I can for everyone worried about this great community asset.

15:40:00

I congratulate the hon. Member for Taunton and Wellington (Gideon Amos) on securing this Backbench Business debate. I also thank Nik Frost and Emily Pidgeon from my office for doing the research for this and other speeches that I have made in recent days. We all know that post offices are critically important assets to our communities. I know that your own post office in Romsey is under threat as a main hub, Madam Deputy Speaker; I know you do not have the ability to voice that, so I shall do so on your behalf. I am lucky enough to represent seven post offices in South West Hertfordshire. In my first term as a Member of Parliament, Chorleywood port office was closed, having shut in 2019—not for reasons decided by headquarters; there was a local issue—and it took several years before that post office was brought back online. I thank the retailer Lord’s for incorporating the post office into its retail area to ensure that my community could continue to access the excellent services offered by the Post Office. During the global pandemic, we saw how critical community assets and community spirit were to the health and wellbeing of our residents. They are the unsung heroes of our communities. Most post office staff will see their regulars on a frequent basis, and will quickly identify it if they have not been seen or do not look well; while not professionals like pharmacists, opticians or GPs, they are a set of eyes and ears on how their customers are doing. Through various announcements, recently and over the past few years, we have seen the demise of high street banks. I am a former furniture retailer, and it still makes me sad that our high streets are not what they once were. Post offices are one of the few beacons left on high streets up and down our country; while there is an absolute draw to online retail, and I am a free marketeer, I know that if we do not continue to support our post offices, we will live to regret it. We must protect the assets that we really care about, and I include the post office in that. I know that my community cares about this as well. When Croxley Green post office was under threat, I got a lot of correspondence asking me to be proactive. Fortunately, the Post Office decided to stop its plans to review that particular post office, but that was just the tip of the iceberg. I know from colleagues that their inboxes are filling up with concerns from constituents about what they value. It is the silent majority who will be adversely affected if we do not speak up and support our post offices. I fully support the move towards banking hubs. It makes sense to ensure that communities are drawn to critical assets such as our post offices. It is my understanding that the agreement for the Post Office to provide banking hubs ends at the end of this year. I urge the Minister to reassure the House that if that is the case, he will look into it, and ensure that the Post Office quickly gets into negotiations with retail banks to ensure they are viable. With more and more people having less access to cash, the Post Office remains one of the few community hubs in areas where our constituents can always go and get cash out. It is not all easy for the Post Office: I do not want to get party political, but post offices will now have a £45 million additional bill because of the national insurance jobs tax, and there has been a significant increase in business rates within the estate. While the drive for technology is important, the Government, in my view, need to look at how they can support places like our post offices to ensure that they remain commercially viable. I can assure the Minister that he will have my support if he is able to do so.

15:44:00

I am very grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this timely debate. I was glad to have the opportunity to support him in doing so. Hon. Members have described very powerfully the closures that are happening in their constituencies. In my constituency, the last remaining post office on the historic King’s Road is threatened. It is a long time since the King’s Road heyday of the swinging ’60s, when “Please Mr Postman” was first a hit. Unfortunately, since then the number of post office branches, on what is a very long road, has dwindled and there is now only one left. Shockingly, it is one of 108 directly managed branches across the country that the Post Office is planning to shut, 32 of which are in Greater London. The Post Office says that it is doing that to save money. I hope it is not doing it to pay for the costs of resolving the Horizon scandal. We will perhaps find out over time. Meanwhile, we have a King’s Road post office that offers a buzzing, full service to lots of customers. There are regular queues—every time I go in there I have to wait 10 minutes to be served—and people love the staff. They tell me how worried they are at the possibility of it closing and how incredulous they are that it could even be considered. They depend on it. There simply are no other options nearby. All sorts of people go there. As my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) mentioned, it is particularly older and disabled people who rely on post office services for bill payments and access to cash, and they are the most worried. Around the corner from the post office, there is a number of sheltered accommodation and retirement housing blocks. The people who live there will be disproportionately affected. On hearing what was planned, I immediately launched a petition and was not surprised to get 1,000 signatures in a very short space of time. Many other people have got in touch with me to express their disappointment, dismay and concern. I met Post Office management in early December and left them in no doubt about the anger and shock in the community. They said that the King’s Road post office was losing money. They also said that they might consider franchising it to a retail partner or an independent postmaster, but that no decision had yet been taken. Naturally, I asked to see a full, detailed analysis of the figures. They very kindly responded that they would let me have that in the new year, which we are now in. I will be seeing them again next week and pressing them to provide that analysis. I expect to see not just the financial reasons for any decision to close the post office on the King’s Road, but a detailed impact assessment on how the change would affect the community and what steps would be taken to mitigate it. The number of customers matters, of course, but so does the type of customer that the post office serves. I have touched on this, but we cannot just brush aside the needs of older and disabled people: people who do not feel comfortable banking online, people who prefer to use cash. We cannot let some people feel that they are seen as less important, because they are not less important. We cannot let them feel they are left behind. They must not be left behind. We need to find a solution that serves the needs of everyone. That is why it is so important to me that the Post Office consults genuinely and authentically with the local community about the change. I will be seeking clarity on that as well. Finally, I will try in the meeting to get clarification on the Post Office’s thinking on keeping the King’s Road post office open by franchising it. I have heard the concerns that hon. Members have expressed about franchising, but if it proves to be the only option—we are a long way off that—I intend to pitch in and do all I can to make it a success for my constituents. When we lost a major post office on North End Road in the Fulham part of my constituency, I worked very closely with the local council to support a new franchisee. I was delighted to open a new post office on North End Road last year. It is a franchise, yes, but it provides a seven-day-a-week service from 9 in the morning to 9 in the evening. It provides a full range of services—even newspaper delivery, which does not happen very much. I was there just last week. It is thriving and very popular. People feel well served. That is good news for the people of Fulham, but I cannot help wondering why the Post Office management have to go down the franchising route. Why are directly managed branches so much more expensive to run than locally franchised branches? Perhaps the Minister can shed some light on that; I will be asking the Post Office. I am delighted by the work that the Government are doing, and their determination to revitalise our high streets. I welcome the money that has gone into the Post Office, and I welcome the proposed increase in postmasters’ pay. I look forward to seeing, later this year, the Green Paper setting out options for the future of the Post Office, but it would be helpful at this stage to have clarity about the Government’s long-term aims. Is one of them to maintain a thriving network of post offices? I do hope so. Will banking services feature in the Green Paper? Some interesting ideas have been raised here today. I can reassure my residents in Chelsea that I will continue to work with them, with the Post Office and with the Government to fight the closure of the King’s Road branch, and to ensure that no one is left behind.

15:50:00

I join others in thanking my hon. Friend the Member for Taunton and Wellington (Gideon Amos) for securing the debate, and I am grateful to the Backbench Business Committee for timetabling it. As many Members have pointed out, post offices form a vital part of our local communities and high streets—millions of people depend on them—but in my Oxfordshire constituency, which contains many villages, they are under threat. These post offices are community hubs which play host to a number of services that are essential to local people and small businesses, particularly in rural areas. They provide vital human contact, and offer information and support for people who might otherwise be isolated, especially given suboptimal rural transport links. Just this week Karen Forman, a postmistress in Blewbury, told me that she had not only been contacted about many postal matters, but—this is relevant to what was said by the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer)—had been contacted about a lost cat and a lost bunch of keys, and had helped someone to locate a bank card. As other Members have noted, many post offices are facing rising operating costs, and the services that they offer do not generate much revenue—an estimated 1.7p per transaction—which makes it hard to keep the lights on. We could do a great deal more to support our community branches. As we heard from the right hon. Member for Orkney and Shetland (Mr Carmichael), post offices can provide vital local services, but only if they are properly supported and invested in, and are staffed appropriately. Could we, for example, make more use of post office hubs? Could they help people who are digitally excluded to book medical appointments on the internet, or provide services such as printing? Of course, we also need to secure justice for the wronged postmasters—and the flawed Horizon system is still being used—as well as giving more support to the people who have been neglected as a result of that scandal. The post office network and the hard-working postmasters and postmistresses are in dire need of our support in villages such as Blewbury, and many more in my constituency and those of other Members.

15:52:00

I thank the hon. Member for Taunton and Wellington (Gideon Amos) for securing this very timely debate on the future of post offices. Sadly, few of us have come here today with positive experiences; instead, alongside our constituents, we are concerned about the declining presence of post offices in our communities. In recent times the Post Office has been in the news for all the wrong reasons, with no worse example than the Horizon IT scandal—a shameful, unforgivable wrong done to 900 postmasters, which undermined public faith in the service. However, public faith in the Post Office has been betrayed in other ways too. The recent speculation on the future of directly managed branches has caused genuine panic and concern to my constituents. I appreciate efforts by the Post Office to reassure people that no formal decision has yet been made, but I fully understand why so many of my constituents believe that closure or service reduction is inevitable. So many post offices have already shut their doors across the UK as the directly managed branch model has been replaced, and that shift towards franchising has left many communities fearing that the post office is no longer a permanent fixture in their high streets or shopping centres. That is because what was once a simple public service has increasingly had its future decided by profitability, rather than the needs and demands of the community, and yet for my constituents, the post office is more than just a place to send parcels and letters; it represents a trusted and valued institution. That is why the Post Office has been around for nearly 400 years. When Post Office officials emailed me to say that directly managed branches were flawed because they had “no retail offering”, it felt as though there was a disconnect between those who use the service and those who manage it. The No. 1 duty of the post office should be to provide a public service. Whether retail offerings are available in addition should be a secondary consideration, not something motivating the closure or outsourcing of these branches. Given the news that WH Smith, which manages around 200 post offices, is looking to sell all its high street stores, the franchising model ought to be reviewed as a matter of urgency. I was already concerned about the future of our post offices, but this news only compounds my fears. As with the directly managed branches, my thoughts are with those employed in the WH Smith branches, who will be feeling anxious about what this news means for them. Post Office officials have confirmed that they are in talks with relevant trade unions regarding the ongoing consultation, but I sincerely hope that those are genuine discussions and that the concerns of the workforce are listened to carefully. In an area such as Springburn, which already has a high unemployment rate, it would be unacceptable for local jobs to be lost. The Springburn Crown post office is the last directly managed branch in my constituency. It occupies a space in Springburn shopping centre, which is well connected and well used by people across the north-east of Glasgow. I recently met the community group Spirit of Springburn to discuss the future of the Crown post office. The community are rightly worried about what closure would mean and raised with me their concerns about the detrimental impact it would have on not just Springburn but the wider north-east of Glasgow. They reminded me that not long ago, the Springburn area had four bank branches. All those branches have now closed—a familiar story in constituencies across the UK, as the last Government presided over 9,500 bank branch closures. Those closures caused massive damage to our high streets and shopping centres and made banking much more difficult for too many. When those closures occurred, the post office was always designated as the place for people to continue to access their bank. In fact, when Lloyds bank announced yesterday plans to close its own high street stores, it said that people should go to the post office to continue using banking services, but how can people do that if there are no local post offices left? The reality is that Springburn Crown post office really is the last bank in town, and now even that is at risk. It is profoundly unfair for my constituents to find themselves in this worrying situation, and they deserve urgent reassurance that Springburn post office will not close. That is the appeal I am making to the Government today, and it is also the case being made by the local community. Indeed, the vice-chair of Spirit of Springburn, Emma Porter, has written to the Secretary of State for Business and Trade to do just that—

Order. The hon. Lady will recognise that she was on a time limit, and in order to accommodate all the other Members who wish to speak, I am going to reduce it to five minutes. I call Matt Vickers.

15:58:00

I thank the Members who brought this important debate forward. For generations, the local post office has been the beating heart of our towns and villages. That is certainly the case in Stockton and Thornaby. It has been more than just a place to send and receive mail; it has been a cornerstone of community life and a trusted space where people access essential services, stay connected with loved ones and support their businesses. Yet today, we stand at a crossroads. The pressure of modern technology, financial constraints and shifting consumer habits have placed our post offices under real threat, and all those challenges have been made so much worse by the Government’s national insurance tax raid and the slashing of business rates relief. There are threats to the future of the post offices in Stockton and Thornaby. In Stockton, our post office has changed location over the decades but has been ever present and ever valued. It was hoped that a franchise in a retailer could protect its future, but the impact of the national insurance tax raid and the slashing of business rates relief are forcing retailers across the country to close stores and axe jobs. In Stockton and Yarm, the impact is compounded by the Labour council’s introduction of short-stay parking charges. Retail is one of the most important sectors in the country. It is the largest private sector employer in our economy and often sits at the very heart of our communities, and it is the biggest social mobility driver around. In the last few weeks, however, we have seen fantastic retail giants, including Sainsbury’s and Tesco, axing jobs and killing opportunities. In Stockton, we have heard the sad news of WHSmith’s closure. The store has hosted the post office, but it looks set to close its doors as a result of the Government’s war on high streets. I have met representatives of the Post Office to share my concerns about the impact that the closure will have on so many of my residents, particularly the elderly. The current post office is not due to close until May, and it has committed to working with me to look at alternative franchisees and locations in the town. I am delighted that a number of potential operators have already shown an interest. In Thornaby, the situation remains concerning but unclear. The local postmaster has a lease, but the community were recently shaken when a planning application went forward for a Pizza Hut to take the post office’s place. The community spoke and put forward their objections, and the application was rejected. There are fears of an appeal. I have engaged with the post office and the town centre as recently as this morning, and hope remains that we can find a way forward. The post offices in Stockton and Thornaby are essential. Their closure would not simply mean the loss of a building; it would mean the loss of convenience, social interaction, footfall in the town centre and economic stability for many. Given the recent announcement that NatWest is closing its Stockton branch, our post offices are absolutely vital to our local towns. I am determined and hopeful, and will do everything I can to keep our post offices’ doors open in Stockton and Thornaby.

16:02:00

I thank the hon. Member for Taunton and Wellington (Gideon Amos) for securing this debate, which, as is shown by the number of hon. Members wishing to participate, is incredibly timely—not least because later today, coincidentally, I will present a petition to the House about the potential closure of Chester-le-Street post office in my constituency of North Durham. Chester-le-Street is one of the 115 Crown post offices at risk of closure following Post Office Ltd’s announcement that it is reviewing the future of its directly managed branches. This is worrying not only for those who are employed in those branches, but for the many people who use post office services, and for the high street—in Chester-le-Street, we would say the “front street”—businesses that rely on the footfall and passing trade that post offices bring. The post office in Chester-le-Street has been at the heart of the community in North Durham since 1936; indeed, it is one of only a tiny number of post offices that bear the cypher of King Edward VIII. Chester-le-Street has lost most of its high street banking branches in recent years, so it is more important than ever that this vital hub and delivery office remains open and accessible for my constituents. Over 650 people have signed the petition that I will present later, which calls on the Post Office to ensure that the Chester-le-Street branch remains open. The Post Office’s corporate website rightly describes the corporation as “an anchor of UK communities for centuries”, and says that it is “driven by a strong social purpose: to be here, in person, for the people who rely on us.” I could not agree more. We must ensure that in Chester-le-Street and the other places that hon. Members have mentioned this afternoon, post office branches remain open “in person”—to use the words on the Post Office’s corporate website—on our high streets and in our town centres, so that they can provide the services that local people rely on.

16:04:00

Wherever we grew up in the United Kingdom, we all remember the post office and our parents imbuing us with the sense that it was one of the things that we could rely on and trust in a changing world. There are many reasons for that, one of which is the long-serving and always interested staff. In rural areas—Boston and Skegness has many rural areas—post office staff are important in helping people in villages, small towns and communities, particularly the elderly, the disabled and the vulnerable, to use certain services. When we were growing up, we did not have the digital devices we have now. In the many brilliant contributions today, we have heard that post office staff know their customers. They know who is healthy and who might be struggling. If someone does not appear on their regular day, at their usual time, they might say, “Where is Mrs Smith?”. That is massively important in our communities. This is not just about money; it is about the asset value of post offices in our communities. We and all the post offices on the frontline have been let down by decades of mismanagement. In Boston, WHSmith has a post office franchise, and yes, it is closing, which has caused great consternation. Sadly, WHSmith has not been well managed as a retailer. People are concerned that the replacement will be much smaller, and they cannot understand why services are being withdrawn. If we are trying to make post offices more viable, surely they should have more services, not fewer. The operators and owners of the post office in Swineshead cannot understand why services such as the sale of premium bonds and fishing licences, or the payment of tax and national insurance to HMRC, have all been withdrawn. That makes the post office less viable. All our communities, towns and tiny villages are different, so surely we need to be massively flexible, whether we have a stand-alone post office, or one in a franchise, a library or a village hall. I was delighted when there was a pub in the village hall; maybe we could have a post office in a pub. I digress, but Members can see my point. Post offices are the most important part of communities, and it is the elderly and the vulnerable who need them most. That is why I hope that the Government, given all their challenges, remember that this is not about the money. It is about the asset—the community hub of the post office.

16:08:00

I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this debate. Members across the House have spoken eloquently about the importance of their local post office, particularly at a time when high streets across the country are suffering. Shops have closed, and banks have left or are leaving the high street. The post office is usually the remaining thriving hub of activity on the high street. Last year, residents found out from media reports that the future of Westbourne post office was uncertain. There was no prior consultation, and no input from those who use it daily. Many of them wrote to me with their concerns about the loss of such an essential community asset, and I share their worries about the possible loss of such a popular and well-used service. At the end of November, we launched a petition to save this much-loved post office. To date, more than 2,200 people in the area have signed it. As part of the petition, I asked people to share what they love so much about the post office and what it means to them, and I have been inundated with messages from local residents. It is essential to businesses that use its services, and to the disabled and elderly, who need it for banking, paying bills and accessing government services. It always has a queue coming out of the door. It has been described as a lifeline and the heart of the community. I will read out a few of the responses I received, to give the House a sense of the importance of our post office. One reads: “It is an essential service for so many in the area. I am disabled and I can’t travel further to deal with the things the Post Office helps with. It’s nearly always busy, with queues out of the door. To remove it is sheer madness”. Another response reads: “The Post Office has been open since 1910 and is an essential part of Westbourne village. It serves as a vital resource for elderly residents like me, who may not know how to use the internet and no longer have any banks in the area”. Another person said: “As a manager of a local charity shop, the post office is integral to our day to day running as provides banking opportunities and enables us to send stock. We use it for stationery and supplies. It’s a vital part of the community”. That is just a snapshot of the responses I have received from different sections of the community. They show that the post office is not simply a business; it is an essential for many people who use it. I have heard from the Post Office that no decisions have been made yet about the future of the branch. Like my hon. Friend the Member for Chelsea and Fulham (Ben Coleman), I have heard that the branch is losing money, but I have not seen any evidence of that. I know a franchise model is being explored, which may have benefits. I am grateful to my hon. Friend the Member for North Durham (Luke Akehurst) for raising the issue of WHSmith. We are concerned locally about the franchise model because our branch of WHSmith has just closed in the town centre, not far from the post office branch. Understandably, there is scepticism locally about relying on that model, when we have just seen the loss of a post office, with no plan to replace it, despite the high demand for its services. I welcome the Government’s commitment to the Post Office, the financial support that has been outlined, and the forthcoming Green Paper. That shows that the Government understand the importance of post offices to communities. In his closing remarks, I hope the Minister can reassure us that there will be no impact on the quality of services that communities get, and that he is exploring all options—for example, the possibility of providing services, including banking services, through hubs, or offering Government services in post offices to make them viable and keep them in communities. I reassure my constituents in Bournemouth West that I will continue to fight for the post office in Westbourne, and the ones in the town centre.

16:12:00

I congratulate my hon. Friend the Member for Taunton and Wellington (Gideon Amos) on securing the debate. Having asked for a post office debate at business questions only two weeks ago, I was delighted when he secured this one. In rural areas, such as my Thornbury and Yate constituency, post offices provide vital services that enable people to live their life. Since 2015, over 6,000 bank branches have closed across the country, making it harder for people to access their cash and use banking services. Many have been reassured that they can still access those core services through their post office, but now even that is at risk. I agree with the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer) on the importance of post offices to e-commerce. When I made my recent visit to my local sorting office, I was told that the Royal Mail is now a parcel delivery service with a sideline in delivering mail. Obviously, post offices play an important role in e-commerce and, in doing so, support local businesses. The recent news that the Post Office was looking to close 115 Crown post offices was a huge blow; one of those post offices is in Yate. Residents tell me that it feels like a done deal, not a proposal open for discussion. When I met the area manager, although she said that no decisions had been made, there seemed to be a strong leaning towards moving all post offices to the franchising model, with all the risks that hon. Members have already mentioned.

Raynes Park has an important high street in my constituency. There are no banks in Raynes Park, so our solitary post office is a vital lifeline, allowing residents and businesses alike to access banking, bill payments and traditional postal services. However, it is one of 115 Crown branches at risk, and my constituents are very concerned about the uncertainty. Does my hon. Friend agree that the Government should be giving assurances now, to provide communities with peace of mind, particularly the old and digitally excluded?

I absolutely agree with my hon. Friend, having seen the anxiety that the threat of closure is provoking in my constituents. Yate post office is very busy; there are often significant queues of people waiting to access services. It is rather unusual, because it shares its space with the local sorting office, which operates from the second floor of the building. The quality of service would be negatively impacted if it were squeezed into another existing business. Yate and Chipping Sodbury have also lost several banks on the high street, with many people being told, as I said earlier, that they could rely on the post office instead. Now, even that is at risk, with Yate listed by the Post Office as one branch it is seeking to close. Residents are rightly angry about that, with more than a thousand signing my petition to keep the post office open. Sadly, it is not just the Crown post offices that are threatened with closure. We recently had confirmation that the post office in Cromhall is set to close, due to the closure of the village shop in which it is based. That means that the neighbouring outreach branch in Tytherington, which is overseen by the same sub-postmaster, is also at risk. The sub-postmaster told me how the post office at Tytherington is busier than the one in Cromhall, fuelled by the fact that nearly all the banks in nearby Thornbury have closed. Indeed, Lloyds has added itself to the list today. Tytherington post office also has strong support from customers using Royal Mail services for businesses, as it has a sizeable free car park, making it convenient for them to bring their parcels, letters and banking to the post office counter. Despite that, the Post Office refuses to allow the Tytherington branch to become a stand-alone site, and that is causing huge concern for residents. The Tytherington branch is well supported and is an essential service for residents, many of whom do not have private cars. There is no public transport in the village, meaning that the loss of the post office would leave some people utterly cut off. The post office is based in the thriving community shop, which is run by volunteers and also provides a vital service to the local community. In the wake of the news, a grassroots petition supporting the post office in Tytherington has gained more than 800 signatures in just over a week. However, the Post Office said to me that it would not review its decision because, “In the area there is a Main Post Office at Thornbury and a Local branch at Alveston—both are within 3 miles of Tytherington.” That is completely tone deaf and ignores the lack of public transport. What are those without cars meant to do? The Post Office has said it is keen to explore a new outreach service and the possibility of a new branch, but all that will take time, especially as it is contingent upon finding a new sub-postmaster to do it. It even admits that it is likely the branch will close before an alternative can be found. That means that in just a few weeks’ time, no immediate service will be available in the village. I will do all I can to make sure we secure a post office service at Tytherington and in Yate. In closing, I ask the Minister: does he agree that relying solely on the franchising model of post offices carries risk and that there are benefits to preserving the stand-alone offices? Will he also commit to supporting community outreach post offices based in thriving community shops?

16:17:00

I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this debate. I think my hon. Friend the Member for Bournemouth West (Jessica Toale) has already summarised a lot of the excellent contributions from the Government side. It is clear from today’s debate that we all know that post office branches are essential to our local communities and the local economy. It saddens me that this Government inherited a Post Office in such a precarious position. Having discussed the matter with senior Post Office staff and the Minister, I know that the organisation is facing serious financial challenges, and I am grateful for the engagement of the Government and the Minister on the issue. That forms the backdrop to the announcement that the Post Office is considering the future of the remaining 115 directly managed branches, which has been referenced countless times today, with a franchising model being considered for them. I remain especially concerned about the future of the Morley post office on Queen Street. Morley sits in the heart of my constituency. It is a town of around 50,000 people and one of the key locations that people come to for financial services and shops. The directly managed branch is vital for my constituents and for those who rely on the services that it provides, and I have been looking for certainty that it will remain on the high street where it belongs. I know the strength of feeling from my constituents, as more than 2,500 people have signed my petition to keep the branch open. It is clear that after the closure of many bank branches across Morley, the post office is a lifeline for those who need it. The numbers back that up—it is not just my testimony. While other directly managed branches have seen a 34% drop in footfall since 2019 because of the pandemic, the Morley post office is only 3% down. We use our post office. A word on bank branches and banking hubs: I have been actively pursuing a banking hub for Morley town centre, especially with the recent news that NatWest is due to pull out of the town this year. NatWest even pointed to the post office on its way out and said, “Don’t worry—you have that service there,” despite the threat of closure. I have been in touch with Link, one of the organisations that determines which areas gets banking hubs, and it tells me that Morley does not yet meet the criteria for a banking hub because we still have one branch left. While I have many questions about the criteria, we will have to save them for another debate and another time. While Morley does not meet Link’s criteria, and while I continue to have those discussions with Link, we cannot have a situation where my post office closes. Thankfully, the continued operation of Morley’s post office will not prevent us from securing a banking hub in future, so there is no reason why we should not do everything in our power to keep the post office open, and that is exactly what I am doing. As I stated, the branch is very much in demand. It is used by local businesses that trade on our high street. Business owners such as Castlepoint, which owns and operates Morley market, have contacted me directly about their concerns about the branch closing. Post Office research shows that three in 10 SMEs use a post office once a week, whether to post parcels to customers or deposit their cash takings. Losing this branch, which is surrounded by so many businesses in Morley, would make us all worse off. I know that the direction of travel for the Post Office is to move towards the franchising model that we have heard so much about today, and I remain hopeful that a suitable postmaster will be found to take over the branch, but I am also clear that the branch should remain on the high street. Having it in an accessible place in Morley town centre is very important for both residents and businesses, and I will continue to make that case as strongly as I can. It is why I have requested that those interested in taking over the franchise in Morley contact me. I am keen to support their bids, assuming that they are in the best interests of Morley and the town centre. Finally, I ask the Minister whether there is any threat to the number of services that a directly managed branch can offer if it transitions to a franchised branch. I reassure all my communities in Leeds South West and Morley that I will work tirelessly to ensure that this branch remains open. It is crucial that the services that the post office provides in Morley town centre remain there for many years to come.

I call the Liberal Democrat spokesperson.

16:22:00

I congratulate my hon. Friend the Member for Taunton and Wellington (Gideon Amos) on securing the debate. The contributions throughout have been unified in highlighting that post offices are a focal point of our communities. They are a vital part of our society and our high streets, with millions of people depending on them every week. They are community hubs, providing access to communication, banking and other vital services. That is particularly important for those with restricted access, such as older people or those in more rural populations with little email connectivity. There are villages that fit that exact description in my constituency of Wokingham, such as Finchampstead, Swallowfield and Hurst. That is why I am deeply concerned about the news that 115 post office branches may be closed, with around 1,000 jobs at risk of being lost. It has the potential to increase social isolation for some of the most vulnerable groups in the UK. I am especially concerned that the Post Office is reviewing proposals to replace existing branches. Specifically, it is looking for alternatives to its wholly owned branches, and considering franchise arrangements where a third party could take them on instead. That opens up lots of risks. In my constituency of Wokingham, the post office in Hurst was unexpectedly closed a few weeks ago. It was located in a shop that many considered a pillar of the community. Through no fault of the post office, the tenants running the shop had to close its doors. Losing a post office can really harm a small village such as Hurst, and the proposed solution that people should travel to Wokingham or Twyford to access services is simply not possible for all residents. Public transport links are limited, and those who rely on the post office are less likely to drive. If the Post Office estate is reliant on third parties, it has no control, and there is the worrying potential that situations like that in Hurst will become increasingly commonplace. A future in which losing a local service once means that it is gone forever—very few are replaced once they are gone—with little chance of appeal is a failure of Government policy. That is especially relevant considering the potential loss of 500 WHSmith shops across the UK, many of which house post office branches, such as the one in Wokingham town centre. The high street is struggling and the Government need to act urgently to turn things around. What steps are the Government taking to ensure that the Post Office is on a sustainable footing for the long term? Will the Minister commit to ensuring that none of the 115 post offices will close until a consultation with each local community has been undertaken? Has the Minister met representatives from the Post Office to draw up plans in case it loses hundreds of its sites due to WHSmith’s financial issues? The BBC reported today that Ofcom has proposed cutting the delivery of second-class letters to every other weekday and scrapping deliveries on Saturdays. That would harm services for millions of households and small businesses. Royal Mail executives should be working night and day to turn the company around and fix the postal service. The new owners agreed to the existing delivery targets when they took over the company, and they should stick to them. I would appreciate it if the Minister could address my points and offer reassurances that our communities will receive the great service they deserve. Post office branches provide a place to do banking for millions of people across the country, and that is the case in Wokingham, but another area of concern is the lack of resilience in our local financial services. The WHSmith-located post office in Wokingham is too small and the staff are too busy with all their other tasks. One constituent had to wait about 45 minutes to withdraw £15. That is why I and local campaigners like Lynn Forbes hope that we can get a banking hub. However, our application has been declined. If the WHSmith in Wokingham town centre were to close, our already limited options would be reduced further. Link, which provides the banking hubs, is encouraged within the current legislation to consider the protection of face-to-face banking, but it is not explicitly empowered to take that into account when making a final decision on whether to establish a banking hub. Instead, it just focuses on cash access. Will the Minister explain why the protection of face-to-face services is not considered, and will he introduce further legislation to require their protection?

I call the shadow Minister.

16:28:00

This has been an excellent debate, and I congratulate the hon. Member for Taunton and Wellington (Gideon Amos) on securing it and thank the Backbench Business Committee for awarding it. A consistent theme throughout the debate has been the important role the post office plays in communities across our land, providing what the hon. Member beautifully described as friendly access to key services that connect people, that service communities, particularly those without banks, and that help those unable to use the internet to connect to Government services. In West Worcestershire, we are fortunate enough to have 31 post offices, including some mobile services, and I put on record my thanks to all the friendly sub-postmasters and mistresses who provide those services. Over the course of the debate we heard about places across the UK: Dunstable and Leighton Buzzard, South West Devon, South East Cornwall, Orkney and Shetland, Bermondsey and Old Southwark, South West Hertfordshire, Chelsea and Fulham, Didcot and Wantage, Glasgow North East, Stockton West, North Durham, Boston and Skegness, Bournemouth West, Thornbury and Yate, Leeds South West and Morley, and Wokingham, and in interventions we heard about Newton Abbot, Dawlish, Teignmouth, Basildon and Billericay, Dulwich, and Tiverton and Minehead. And I dare say, Madam Deputy Speaker, you feel strongly about the post office in Romsey. We can see just how incredibly valuable that network of friendly institutions is across the country. I am afraid to say, however—and I break it gently to the Minister—that Labour’s Budget of broken promises is threatening that network. Through the national insurance jobs tax, the hike in business rates and the incoming employment regulations, Labour is hiking the cost of doing business, as swathes of post offices are facing tens of millions more in tax and red tape. Those pressures mean that the Post Office has been forced into assessing the future of more than 100 Crown post office branches. Rumours abound that when the Green Paper is published, it may include a consultation on the reduction in the number of post offices to below 11,500. Will the Minister put paid to that speculation by telling the House when the Green Paper will be published? As the Post Office and its branch network are major employers, with more than 50,000 full-time equivalent workers, another impact is that the Post Office could face an extra £45 million bill as a result of the national insurance hike, according to the Institute for Fiscal Studies. Post offices are often eligible for retail, hospitality and leisure business rates relief, and they face a huge increase in their business rates as the relief falls from 75% to 40%. According to the Government’s own impact assessment, the Employment Rights Bill will cost businesses across the country £4.5 billion. Proportionately, given that Post Office has 50,000 employees, the Bill will cost the Post Office over £8 million. The House does not have to take that from me; I will quote the chairman of the Post Office, Nigel Railton: “It almost goes without saying: we are a business in need of a fresh start – and urgently… And at the recent Budget, we saw…costs rise with National Insurance Contributions, National Living Wage and business rates.”

Will the shadow Minister give way?

I will. I am sure that the hon. Gentleman does not like hearing that news.

It has nothing to do with hearing the news. I just wonder whether the shadow Minister can remind us how of many Crown post offices were lost while she was in government.

I am just getting to that—the hon. Gentleman is absolutely on point with where I am going. Sadly, it was under the previous Labour Government that the network really shrank in a major way, when the number of post offices went into sharp decline, before it then stabilised in the 2010s. In fact, during the entire time that we were in coalition with our Liberal Democrat colleagues, and then in government ourselves, the network remained above that 11,500 figure. It takes action, as we have heard clearly this afternoon, to maintain that precious network.

Will the shadow Minister give way?

I have already given way to the hon. Gentleman, thank you very much.

But you did not answer my question.

I have given way. The previous Government worked to enter into a new partnership with post offices and came up with the idea that people could confirm their identity in person. That is a way of using that valuable network across the land. We recognise that vulnerable people sometimes struggle to verify their identity online. We also began the initiative to help communities dealing with bank closures by setting up a network of banking hubs. I was pleased to hear the Minister confirm earlier today that he will continue backing banking hub delivery through the Post Office, but does he consider that the framework negotiations between the Post Office and the banks, which are in their final stages, are going well? One year on from ITV’s historic programme “Mr Bates vs the Post Office”, I want to put on record my thanks to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for all he did to address the issues raised in that programme. Can the Minister detail the progress his Government are making on the compensation for sub-postmasters? I want to raise the issue of Fujitsu, which designed the Horizon IT system that has destroyed so many lives and livelihoods. Under the previous Government, there were discussions with Fujitsu about providing a share of the compensation to the victims of the Horizon scandal, and Fujitsu confirmed that it will pause bids for Government contracts until the public inquiry is concluded. However, this month it was reported that the Government have awarded new contracts to Fujitsu. When Labour was in opposition, many Labour Members criticised awards made to Fujitsu, so can the Minister provide an update on the Government’s current approach?

The hon. Lady mentions the Horizon scandal. Is she of the opinion that the previous Government’s failure to address the Horizon scandal over such a long period of time and the billions of pounds that have had to be spent sorting out the mess since then have nothing to do with the financial problems that the Post Office now finds itself in?

I do not want to politicise this too much, because I think that had gone on for a long period of time, and the inquiry took a lot of evidence last year. I think my hon. Friend the Member for Thirsk and Malton played a remarkable role in exonerating so many people, and in setting up the public inquiry. My next question to the Minister is: could he provide an update on what he is hearing through his channels about when the inquiry may publish its report. It finished taking public evidence at the end of last year, and I anticipate it may publish that later this year, but does he have an update on that for the House? Does he have any plans to compensate sub-postmasters and sub-postmistresses who were victims of Horizon’s predecessor systems—the Capture and ECCO systems that predated Horizon—and does he have plans to quash any convictions arising from those two systems? In the spending review, how much public money is the Minister requesting to put in a replacement for the Horizon system? Can he tell us how many post offices currently benefit from small business rate relief, and what are the Government plans about continuing that throughout this Parliament? Further to the question from the hon. Member for Wokingham (Clive Jones) about today’s worrying announcement from Ofcom that second class post may be delivered only every other weekday and not on Saturdays, what discussions is the Minister having with Ofcom to prevent this further attack on the demand for our precious postal services? To conclude, we have heard how incredibly important this precious network of friendly people across our land is to this country, with those 11,500 post offices and the distance requirements that are in place. After hearing from so many colleagues, will the Minister reassure the House that he will sustain that network throughout the life of this Parliament. Prevention is so much better than cure. Let us all focus on supporting our much-loved post offices in any way we can to continue the wonderful work that they do up and down the country.

16:38:00

I echo the thanks to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this important debate. There have been some very clear and consistent messages from across the House to the Government in this debate, and I pay tribute to the passion with which hon. Members on all sides of the House have raised key constituency concerns, as the hon. Member for West Worcestershire (Dame Harriett Baldwin) said. We have heard from my hon. Friends the Members for Dulwich and West Norwood (Helen Hayes), for North Durham (Luke Akehurst), for Great Grimsby and Cleethorpes (Melanie Onn), for Dunstable and Leighton Buzzard (Alex Mayer), for South East Cornwall (Anna Gelderd), for Bermondsey and Old Southwark (Neil Coyle), for Chelsea and Fulham (Ben Coleman), for Glasgow North East (Maureen Burke), for Bournemouth West (Jessica Toale) and for Leeds South West and Morley (Mark Sewards). I know that my hon. Friend the Member for Manchester Withington (Jeff Smith) has particular concerns about Didsbury post office. We also heard from the hon. Member for South West Devon (Rebecca Smith), the right hon. Member for Orkney and Shetland (Mr Carmichael), the hon. Member for South West Hertfordshire (Mr Mohindra), the hon. Member for Didcot and Wantage (Olly Glover), the hon. Member for Stockton West (Matt Vickers), the hon. Member for Boston and Skegness (Richard Tice) and the hon. Member for Thornbury and Yate (Claire Young), and I know you, Madam Deputy Speaker, have concerns in this space, too. Post offices provide hugely important everyday services to millions of people across our country. Communities rightly expect to have access to those essential services, just as they would to a GP surgery, a primary school or neighbourhood police. That is because, as many Members made clear, post offices are the very beating heart of our towns and villages. As our economy has modernised and evolved, so too have our local post offices. Today they are so much more than a place to send letters and parcels. They act as high street banks, as many have said, as access points for some Government services, and as community hubs for an array of different activities, generating crucial social capital. Indeed, after the unearthing of the Horizon scandal, the nation’s unanimous support for sub-postmasters and their campaign for redress and exoneration shows how revered the post office and its workers are by the British public—by all of us. We are working as fast as we can to give sub-postmasters the compensation they deserve, and we are indeed exploring what further steps we can take. But since the end of June, in just the six months that we have been in office, more than 1,000 more sub- postmasters who are victims of the scandal have received compensation. The amount paid out in redress has increased by over £355 million, more than double the amount that had been paid out at the time of the general election. As of 3 January, almost £600 million had been paid to over 3,800 sub-postmasters across all four main compensation schemes. Also as of 3 January, the GLO—group litigation order—scheme had received 453 claims of which 370 are fully complete and the remaining 83 are being assessed for their completeness or undergoing a request for further information that would unlock a more generous offer of compensation. We expect then to have paid substantial redress, even if the claims are not fully settled, to the majority of GLO claimants by 31 March. But let me be clear: there are still complex cases to resolve and there is still much more to do in terms of compensation. The hon. Member for West Worcestershire, speaking for the Opposition, asked about Capture. We have identified a number of gaps in the compensation process. We published in particular the Kroll report into what had happened in terms of the Post Office use of the Capture software prior to the installation of the Horizon system. We are beginning to talk to sub-postmasters who used the Capture software about redress going forward so that we can design an effective redress scheme. The hon. Lady and the House may be aware that there are a number of cases where there were convictions that appear to relate to use of the Capture software by the Post Office that are with the Criminal Cases Review Commission at the moment. The hon. Lady also asked about the timing of when we might hear the Sir Wyn Williams conclusions. As she will understand, we as the Government do not want in any way to be seen to be rushing Sir Wyn Williams. We have heard a similar timescale as her—sometime later this year—and we will all wait with considerable interest for the conclusions. The hon. Lady also asked about the Ofcom consultation. I stress that it is still a consultation. Ofcom will be consulting for some 10 weeks and, as she would expect, we will be fully engaged in that process. On the future of the post office, we all know that our high streets have faced huge challenges in recent years. In some cases, the presence of a post office on a high street has been a game changer in driving footfall and attracting custom to other businesses. The public—as many Members have alluded to, it is often the elderly, those who use cash and those who are digitally excluded—rely on the post office for essential services. It is therefore right that the Government hold the Post Office to account to ensure that there is enough postal service provision across the country, and I recognise my particular responsibility in that regard. We protect the post office network by setting minimum access criteria. With a network of this size, we are likely to see fluctuation in the number of branches open at any one time, but crucially, the access criteria ensure that regardless of how the network changes, services remain within local reach of people at all times. The Government recognise the key role that post offices play in their communities and how branches in rural areas in particular often act as community hubs. We are listening carefully to stakeholders to ensure that the whole network, including those branches, is sustainable.

Does the Minister agree that the manner in which the Post Office allowed the information about the closure of directly managed branches to come into the public domain was unacceptable? What is he doing to ensure that the Post Office treats communities with better respect than that in the future?

I gently say to the right hon. Gentleman that we are where we are, and it is important that we move forward. I will come to the question of directly managed branches in a second. To ensure that we are planning properly for the future, we will publish a Green Paper before the summer to seek the public’s views, insights and experiences to help shape the future of the Post Office. In the meantime, we are taking steps to continue to support the network. Along with the annual £50 million subsidy, we have provided a further £37.5 million to support the Post Office network next year. Our thinking on the future of the post office will also be influenced by Sir Wyn Williams’s conclusions. We continue to support and encourage the chair of the Post Office, Nigel Railton, to shift the focus of the Post Office away from headquarters and towards postmasters. The Post Office, with our support, is reviewing its costs, as its financial position continues to be challenging. We are working with the senior leadership at the Post Office on future opportunities, beginning with banking, so that the company can increase its product offers and commercial revenue going forward. The Post Office has set up a new consultative council that will work with senior management on how these new plans are taken forward. It is a first, but none the less important step to change the culture of the Post Office. Building a sustainable future for the Post Office is imperative. It has had many false new starts. Nearly half of its branches are not profitable or make only a small profit from post office business. Postmaster pay has not increased materially for a decade. Mr Railton is looking to deliver a reduction in the Post Office’s costs and, as I have alluded to, an increase in its commercial revenues. He has also set out an intention to transform the service and the support that postmasters receive from the Post Office, which we have strongly encouraged. He has announced ambitions for a new deal for postmasters, and I am pleased that the Post Office recently made a £20 million immediate one-off payment to postmasters to increase their remuneration. On the future of directly managed branches, I appreciate that it is challenging for communities that lose their post office service. I speak from experience, having had Harrow’s directly managed branch close in 2016 and transfer to a franchise service instead. I am always happy to challenge the Post Office on specific concerns that Members have at constituency level. However, the Post Office operates as a commercial business, and the company has the freedom to deliver the branch network within the parameters we set. I know there is concern about the future of DMBs, and it is important to underline that no definitive decisions have been taken on the future of any individual directly managed branch. I have made clear to the Post Office that there must be discussions with unions and other key stakeholders. I am pleased to hear that the Post Office has seen positive engagement from independent postmasters and strategic partners, who have expressed their interest in taking on DMBs. It is encouraging that there continues to be such interest in the chance to run a post office.

I look forward to working with the Minister on the future of the franchise in my constituency. Is he aware that there were 373 Crown post offices in 2010 but that by 2024 that number had fallen to 115? The shadow Minister either did not know that figure or did not want to admit it.

Funnily enough, I am aware of that statistic; my hon. Friend makes his point powerfully. We were clear in our manifesto that that we would seek to strengthen the Post Office network in consultation with postmasters, trade unions and customers, and that remains very much our ambition. That is one of the reasons why we are working closely with the Post Office in providing funding to support the replacement of the Horizon computer system. The Post Office’s future lies particularly in cash and banking. With the right support from the financial services industry and engagement with groups such as Cash Access UK, there is clearly more that the Post Office could offer on the high street through banking hubs and the Post Office network. We are beginning to work with the Post Office to improve its banking offer on the high street. The Government are strongly committed to ensuring the long-term sustainability of the Post Office. It is a national asset that provides an invaluable public service in all our constituencies. There are certainly challenges ahead, but we continue to work with the Post Office to ensure that it is fit for the future. We always welcome views on the network. I thank those hon. Members who secured the debate and all other hon. Members for their contributions.

I call Gideon Amos to wind up.

16:51:00

I have learned today from the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer) that Postman Pat is the model to follow, and just like Postman Pat himself, post office services may change, but they must not wither. We have also heard how much of a trusted institution our post offices are. The word “trust” came through several times from the hon. Members for Glasgow North East (Maureen Burke) and for Boston and Skegness (Richard Tice). We should never forget that it is the staff in those post offices and, of course, the sub-postmasters and sub-postmistresses who were so horrendously treated by the Horizon scandal who make post offices what they are and why they are so important to our communities. My hon. Friends and hon. Members across House are clearly great champions of their local post offices. My hon. Friend the Member for Didcot and Wantage (Olly Glover) mentioned his post office’s lost cats service, which I was interested to hear about, and my hon. Friend the Member for Thornbury and Yate (Claire Young) mentioned the outreach service. To paraphrase my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), in Wellington in my constituency the postal service was fixed so many times it was definitely broken, and now we no longer have one at all for a town of 15,000 people. Many other hon. Members highlighted the importance of post offices as hubs for their communities, including the hon. Members for South West Devon (Rebecca Smith), for South West Hertfordshire (Mr Mohindra) and for Stockton West (Matt Vickers). I completely agree with the hon. Member for Chelsea and Fulham (Ben Coleman) that the King’s Road without a post office seems unimaginable. I wish him well in his campaign. I was somewhat disappointed that the Minister did not comment on the fact that banking hubs, which are being created around the country, are not providing post office services despite having “Post Office” written on the outside of the building. I would very much like to follow that up with the Minister on another occasion; it seems an obvious solution. As the hon. Member for South West Hertfordshire said, securing the next agreement for banking hubs is incredibly important, and we certainly support the Government in achieving that. Finally, I congratulate the hon. Members for North Durham (Luke Akehurst), for Bournemouth West (Jessica Toale), for Leeds South West and Morley (Mark Sewards) and for Bermondsey and Old Southwark (Neil Coyle) on their petitions. The hon. Member for Bermondsey and Old Southwark is also continuing his excellent house-sitting services by sitting in the House this afternoon and making sure that the debate went on as needed. I will leave the House with a couple of quotations from my petition about the post office in Wellington. One petitioner said: “I feel so sorry for those people without a car—particularly the frail and elderly. They have to trek in all winds and weather” to the next village several miles away. They continued: “You see so many villages with their own post office, yet a growing town like Wellington doesn’t—it’s bizarre.” Mary said: “Why was it not considered at the same time as the banking hub, as it’s run by the post office?” The first citizen of Wellington, our mayor, said that “since 2019 when the…Post Office closed, at least two business owners” tried to operate postal services but found that the funding given did not make it a viable option. That is why we desperately need a main post office for the town of Wellington and its 15,000 people. Question put and agreed to. Resolved, That this House has considered the future of local Post Office services.