Privatisation is still best option for UK Post Offices
Queues at post offices apparently were longer than usual in the run-up to Christmas, as people sending different sizes of cards and gift parcels had to worry about the new rules on dimensions and weights of envelopes.
For many, this experience will not be repeated. One in six of the UK’s 14,300 post offices will be closed either this year or next. Add in about 4,000 that have already gone since Labour came to power a decade ago and a third of the network will have been cut in a dozen years. Commercial banks could only stand and admire this brutal approach.
Protecting and improving public services was top of Labour’s agenda. Post offices count as a public service to many people. but not perhaps in Whitehall’s definition.
If asked, most voters would oppose closures per se. Some might think differently if presented with the figures given to ministers by Royal Mail. It claims that only 4,000 offices are profitable and network losses will double to Pounds 200 million in this financial year. Such alarming figures are inevitably a matter of choice in any integrated business, or the NHS. Internal accounting is flexible because overheads can be allocated wherever management wants. Under EU rules, the state ought not to subsidise competitive mail or parcels services. It can still fund post offices that were, until recently, used heavily as outlets for state business.
