Just three UK post offices make a profit

Only three Crown Post Offices in the whole of the UK are making a profit, highlighting the scale of losses at the network of high street branches, it was revealed today.

But despite losses totalling £71 million in the last financial year, Royal Mail bosses insisted they only had plans to close around 30 Crown offices in the next five years.

Chairman Allan Leighton said five would close next year and six the year after, up to a maximum of 30 over five years out of the current total of 555.

The losses equated to £127,000 for each Crown office, the Royal Mail boss told MPs on the Commons Trade and Industry Select Committee.

Mr Leighton told the committee the impression had been given that the Royal Mail was about to sell its “crown jewels” but he denied this was happening.

“We must have the smallest level of closures of any retail industry in the world, ever.”

Mr Leighton said he believed Crown offices would become profitable following the introduction of new products such as financial services and foreign currency exchanges.

Questioned closely by MPs about possible closures, Mr Leighton insisted there was no closure programme.

But in written evidence to the committee, the Royal Mail said a number of leases which were held at peppercorn rents were coming to an end and new rentals could be “dramatically higher”.

For example, the rent on a post office in Cambridge is currently £250 a year but the Royal Mail was facing a rent rise to £250,000.