Postcomm’s perspective on building a viable UK Post Office network

Postcomm believes Post Office Ltd is making good progress in
developing the commercial potential of the network – but there is
some way to go before this can compensate for continued financial
support from the government. New products and services are
providing a lifeline for many Post Offices but for others there remains
insufficient demand for these services.
These are some of the conclusions from Postcomm’s fourth annual
report on the Post Office network. The report, to the Secretary of State
for Trade and Industry, comes at the end of a year which has seen:
· Implementation of the urban reinvention programme and
improvements for remaining urban Post Offices to give them a
more secure future
· Financial support for Post Offices in urban deprived areas
· The development of banking facilities and a wide range of new
products and services for customers at Post Office branches
· Growing concern about the future of the Directly Managed
Branches
· Extension of the funding package for the rural network to help
sustain rural post office branches and support pilots to inform the
government’s longer term plans.
Nigel Stapleton, chairman of Postcomm, said:
“Last year we called for action by the government and Post Office Ltd
to move ahead with the urban reinvention programme to prevent
random closures and to secure a viable network. After a slow start, the
urban reinvention programme has eased uncertainty among urban
subpostmasters by giving the remaining branches a more secure
future.
“We also welcome the major steps that have been taken to offer new
products and services to make Post Offices more attractive to
customers. This is a key development, helpful to customers and
subpostmasters alike, and critical to the future of the network. Our chief
concern at this point is whether the new products and services will
provide a viable living for subpostmasters, particularly in some deprived
areas and we will be closely monit oring this issue.”
The report welcomes the government’s decision in September to
maintain the financial assistance package for rural Post Offices through
to 2008. This continued support will provide a valued service to
customers.
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Postcomm also welcomes the government’s commitment to trial new
ways of bringing Post Office services to customers in rural communities
and to develop a long term strategy for the network.
Notes for editors
Postcomm’s fourth report to Patricia Hewitt, Secretary of Stat e for Trade
and Industry, highlights key developments across the Post Office
network in 2003/04. The report also updates network statistics. The
number of Post Office branches fell by 1,278 in 2003/4 – a significant
increase in the closure rate compared to 2002/3 due to the urban
reinvention programme of planned closures (149 rural, 1,129 urban).
Almost nine out of ten people (88%) say the Post Office is important to
the community and 96% of the population trust the Post Office. Of rural
branches that changed hands, 60% had an annual income from the
provision of Post Office services of less than £20,000.
Following the Secretary of State’s announcement in September 2004
on the future of the rural network, the government has now agreed to
Postcomm publishing its key recommendations in this annual report, as
well as the underlying research by NERA and The Future Foundation.
Confidential information has been removed from the published
research.
The report, Building a viable network, and reports on the future of the
rural network by NERA and The Future Foundation are published today
on Postcomm’s website, www.postcomm.gov.uk. Printed copies are
available from Postcomm at 6 Hercules Road, London SE1 7DB.