Brussels clears post offices plan
Brussels cleared the way yesterday for the closure of 3,000 urban post offices after deciding not to challenge a government restructuring scheme costing up to £210m.
The European Commission said the plan, involving up to £180m compensation for sub-postmasters and up to £30m investment in the remaining branches, did not breach rules on state aid or competition.
The money, to be paid through the Post Office, is aimed at bringing the post office network down to a sustainable size, with 5,000 surviving urban counters.
At its weekly meeting yesterday, the Commission ruled that the government subsidy to the Post Office would not exceed the additional costs to the network of the restructuring.
The Commission also approved a £10m regional aid package to Vauxhall, which is investing in its plant at Ellesmere Port, Cheshire.
The government claimed the subsidy was needed to compensate Vauxhall for the higher costs of investing in Ellesmere Port rather than Antwerp in Belgium.
