GBP150m subsidy supports UK postal network

The Government injection of a further £300million into securing the future of rural post offices until 2008 could be seen as a “fudge”, said the general secretary of the National Federation of Sub-Postmasters this week.

The cash is on top of the £150million annual subsidy which runs until 2006 but Colin Baker, whose organisation represents mainly rural people, said on Wednesday: “This is a two-year rollover and could be seen as a fudge to keep an ailing network as it is ñ ailing.

“But it does give us two years and we must use them wisely. What the federation wants to achieve is a sustainable and viable rural post office network because it is not, then communities will not be sustainable and viable.”

The pledge has been seen by many as the government’s way of heading off a political row on the run-up to the next election.

It is also understood that the continuation of the subsidy indicates that the government-owned Royal Mail will not be privatised.

Plight

Without this latest boost, the chief executive of Post Office Counters David Mills was faced with closing at least 30 per cent of the 8,000-plus rural post offices which are losing around £140million a year.

In Goudhurst, which was on the verge of losing its post office last year, campaigner and parish councillor Barbara Stafford said: “Money and the acknowledgement by the government of the plight of rural post offices is very good news.

“When we thought we might lose our post office we realised what a lifeline it is, especially for the elderly, young mothers and businesses.

“This new focus on the needs of rural life is a good trend and I hope the government will extend its interest to our other needs such as regeneration of the land, investment in new businesses and rural policing.”

n Around 10 per cent of rural post offices have fewer than 20 customers a week and lose £18 for every customer visit.