(1 day, 19 hours ago)
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Aphra Brandreth (Chester South and Eddisbury) (Con)
The Post Office is a critical part of our national infrastructure. I do not believe that to be an exaggeration. In the time available to me this afternoon, I hope to demonstrate to the House, and to the Minister, why I, many right hon. and hon. Members on the Conservative Benches and, most importantly, my constituents, feel so strongly about the need to safeguard the future of the post office in Cheshire and across the country.
By way of introduction, it is worth briefly setting out where the post office network stands today. In November 2010, the Conservative-led Government introduced a mandate requiring the Post Office to maintain a national network of at least 11,500 branches, alongside access criteria ensuring that 99% of the population live within three miles of a post office. That mandate has provided an essential degree of certainty and stability for post offices over the past decade. I will set out why each post office plays a vital role in our communities and ask the Minister to commit today to there still being at least 11,500 post office branches at the end of this Parliament.
At a time when other high street services are steadily reducing their physical footprint, including banks and, with them, access to cash—a point to which I will return—it is more important than ever that we protect the physical presence of post offices in our communities. For many people, particularly the elderly, those without reliable transport and those who are digitally excluded, the local post office is not just a convenience but a necessity.
The economic case for the post office is also compelling. Independent research estimates that for every £1 spent through the Post Office, a further £1.51 is generated across the wider economy. In total, the Post Office contributes more than £4.7 billion in economic benefit to the UK each year, underlining the vital role it plays in supporting business and trade, particularly small and microbusinesses that rely on local services to operate efficiently. The Government often speak of their ambition to deliver a high-growth economy—even if their actions and policy decisions too often act as a hindrance to that goal. I urge the Minister not to underestimate the contribution of the Post Office to economic growth and local prosperity.
As an organisation, the Post Office has also demonstrated a clear commitment to rural communities, something that is particularly relevant to me as the Member for Chester South and Eddisbury, and for our county of Cheshire more broadly, where, alongside our towns and cities, we have many rural villages. Some 43% of the post office network is located in rural areas, which reflects not only the opportunities presented by rural economies but the unique challenges those communities face. It reinforces the importance of maintaining reliable, accessible, face-to-face services where alternatives are often limited.
It would be remiss of me not to mention the Post Office Horizon scandal and to pay tribute to the sub-postmasters in Cheshire who were so wronged. When the future of the post office is under threat, it is vital that we do not deter people from entering the sector; if we want to see a robust post office network in the future, we must ensure that staff have confidence in the systems that they operate.
Before turning specifically to Cheshire and my constituency, I want to briefly acknowledge some of the challenges facing post offices today. More and more of us are going online for shopping and to access services and, as a result, customer visits to post offices have fallen by nearly a third since 2008. Alongside that, the range of Government services delivered through post offices has declined since 2010. While there is a responsibility on Government to operate efficiently and deliver value for money, we cannot ignore the cumulative impact that this shift has had on the post office network and on the digitally excluded.
Perhaps the most pressing challenge, however, is the broader economic context. Rising operating costs, including rent, utilities, energy costs, increases in employer national insurance contributions and the increases in business rates introduced by this Government, have all placed further pressure on already stretched post office operators.
Back in March last year, the Minister’s predecessor said that the Post Office’s plan aims to achieve operational and financial stability by 2030 and includes a commitment to boost annual postmaster incomes by £250 million by the end of the decade. However, local postmasters have raised concerns with me that, of the £120 million expected in this financial year, the Post Office has confirmed that only £89 million would be delivered by the end of March. What discussions has the Minister had with the Post Office about this reduction, and what steps will the Government take to address the resulting uncertainty for the postmaster network?
The financial challenges that post offices face are real. They are acute, and they must be properly understood by the Government. With that context established, I want to turn to Cheshire, in particular my constituency of Chester South and Eddisbury. There are 21 post office branches across my constituency. I want to highlight a small number of examples that demonstrate both the immense value that those post offices provide and the very real consequences when services are lost or reduced.
I begin with the village of Kelsall, where a post office once operated at the heart of the community, serving residents and local businesses alike. Last year, that post office was forced to close after the Co-op, which hosted the branch, withdrew from operating it, citing challenging economic circumstances. That decision reflects the wider pressures facing retailers and is a direct consequence of rising costs.
Following the closure, I received a significant volume of correspondence from concerned constituents, anxious about the loss of their post office and the impact it would have on their daily lives. In response, I launched a petition to save Kelsall post office and demonstrate clearly the value that the community places on the service. I am grateful to the 337 residents who signed that petition.
For some, the closure affected business continuity—being able to deposit cash takings or send goods—while for others it was about access to cash itself. Many relied on the post office for help in navigating complex digital processes, particularly older residents. In every sense, Kelsall post office was a vital community asset. While we have not yet been able to secure a new site, I want to reassure my constituents that I will continue to work with local stakeholders and the Post Office to make the strongest possible case for a community post office in Kelsall.
Current access requirements state that everyone must live within 3 miles of a post office branch, and while Kelsall residents do have an alternative branch just within the distance under that criterion, some rural roads have no safe walking routes, offering little comfort to those who cannot drive, have limited mobility or lack decent public transport options. For many, the impact of the closure is therefore still keenly felt.
Each of the 21 post offices in my constituency is highly valued, and the closure of any additional branches would have a significant impact. In rural areas in particular, where public transport is limited or non-existent and digital connectivity has suffered from long-standing under-investment, the local post office plays a vital role in meeting the needs of the community.
The reality is that Kelsall is not the only rural village to have had a post office closure. There will be many, many more across the country. Audlem, another village in my constituency, has been without a post office for two years. Then last year, the Labour-led council significantly cut the bus frequency further, reducing residents’ access to vital services. What steps is the Minister’s Department taking to help rural villages and areas not only save their post offices but regain the Post Office services that they have lost?
I turn now to the village of Malpas to highlight the issue of access to cash and banking services. In July 2024, the village lost its final bank branch. Thankfully, Malpas post office stepped in to provide some of the services previously offered by the bank. However, in recent months the post office closed without warning, and when it initially reopened there was no access to cash. This situation has caused significant anxiety for residents and local businesses. I am pleased that the service has become more reliable under new management, but this case clearly illustrates the fragile state of high street provision.
There is now not a single bank branch anywhere in my constituency. The services provided by the Post Office are vital. The risk that the situation experienced in Malpas could be replicated across many villages has serious consequences for residents, businesses and the local economy, so will the Minister commit to considering access to cash and vital banking services in any future sustainable model for rural post offices?
I pay tribute to all those working incredibly hard in post offices across Chester South and Eddisbury. I highlight in particular Sandra and Tony, who do a brilliant job running Tarporley post office, which is one of our four main post offices in Chester South and Eddisbury, alongside Sandiway, Westminster Park and Lime Avenue post office in Weaverham. Of those four, Tarporley is the most rural and, as a result, is absolutely critical to the community it serves.
Other branches in my constituency are classified as outreach post offices, which means that they might be part-time services hosted in village halls, for example, or where post office services are an add-on to a shop, providing a more limited service offering. As a main post office, Tarporley provides services that others do not. It is consistently open, reliably serving customers, offering local businesses a place to deposit takings, providing access to cash and acting as a vital hub for the wider village and surrounding area.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
My hon. Friend is making an excellent speech. Does she agree that individuals such as Sasi in Croxley Green and Usman in Maple Cross are not just sub-postmasters but community champions, and that, like the village pub, they remain a critical asset in our communities?
Aphra Brandreth
My hon. Friend makes an important point and mentions the sub-postmasters in his constituency. I echo what he has said and pay tribute to those who work so hard in my constituency.
Although I sincerely hope there will be no future branch closures, if the Government intend to make changes to the network, will special consideration be given to branches classified as main post offices, particularly those serving large and predominantly rural geographical areas?
The final example I will highlight is Wybunbury Village post office, which demonstrates the wider community role that these facilities provide. Wybunbury is a very rural village with just two amenities: the local pub and the post office, which also operates as a convenience store. At a time when our hospitality sector is under immense pressure from rising costs and business rates, the loss of either would be deeply felt.
Currently, approximately 14% of post office branches are the last shop on the high street. That is both a sad reality and a wake-up call to Government about the need to protect what we have left. Again, I say this with respect to the Minister, but the Government have demonstrated, in policy after policy, that they do not understand the countryside and do not see it as a priority. Will he assure me today that rural branches will not be seen as low-hanging fruit and closed, only to be replaced by urban branches? The social and economic impact would be significant, as I know would be the case in Wybunbury, as just one example.
The post office in Wybunbury is a true community hub, brilliantly run by Kirsty and Daniel. The affection in which it is held was demonstrated clearly when, as part of my recent small business competition, nearly 100 residents nominated it for an award. I was delighted to visit just before Christmas to present the team with a certificate, and I place on record my thanks to them for their continued service to the community.
I have used this Adjournment debate to highlight the vital importance of post offices to Cheshire, to my constituents and to our country as a whole. The campaign to protect the post office network has been championed by Conservatives, and I pay tribute in particular to my hon. Friend the Member for West Worcestershire (Dame Harriett Baldwin) for her leadership in securing 165,000 signatures for our petition, which was delivered to the Prime Minister. As the Minister considers the response to the Government’s consultation on the future of the Post Office, I urge him to listen carefully to the voices of my constituents, to recognise the unique role that post offices play in rural communities and to commit to maintaining the network at its current level.
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
I congratulate the hon. Member for Chester South and Eddisbury (Aphra Brandreth) on securing the debate. In my previous role, she and I travelled the world with the Foreign Affairs Committee, so it is good to be dealing with matters that are closer to home. As she so eloquently argued, no matter is closer to home than the importance of post offices to local communities.
I also thank the hon. Lady for giving me the opportunity, for the first time as the Minister responsible for postal services, to put on record at the Dispatch Box my disgust at the way postmasters were treated in the Horizon scandal. The reputations, livelihoods and lives lost as a result of that scandal shame the country, and it is my responsibility to ensure that postmasters get the redress, justice and recognition that they deserve.
As the hon. Lady rightly argued, post offices are so valued by local communities, and not just because of their economic impact—they root local high streets, bring footfall to high streets and, as she said, in many places are the only shop in the village—but because they are essential community hubs.
Tim Roca (Macclesfield) (Lab)
Disley in my constituency saw its post office close in July last year in slightly dubious circumstances. The hon. Member for Chester South and Eddisbury (Aphra Brandreth) made the powerful case that post offices are really important in rural and semi-rural areas. Will the Minister join me in asking the Post Office to redouble its efforts to reopen the post office in Disley?
Blair McDougall
On this matter, as on all matters in Macclesfield, my hon. Friend is a constant campaigner on behalf of his local community. I will absolutely raise that branch with Post Office management.
The hon. Member for Chester South and Eddisbury mentioned Sandra and Tony, the local sub-postmasters in her area. In my community, I think of Nancy from Harvie Avenue post office in Newton Mearns. She plays a similar role—she not only serves people, but is the cornerstone of the local community. The network of 11,000 post office branches that the hon. Lady talked about makes it the largest retail network in the country, with an unrivalled reach into our cities, towns and villages, which is why it is so important to have this debate.
As the Minister responsible for postal affairs, I am always happy to, and always do, raise issues with Post Office management on behalf of Members of the House. However, I know that the hon. Lady understands that although the Post Office is publicly owned, it operates as a commercial organisation aside from Government. That means it has the commercial freedom to deliver the branch network, but within the access criteria set by the Government, as she rightly pointed out. Those criteria are so important because they set the minimum level of service that should be provided to everyone across the country—for example, the requirement that 99% of the population live within three miles, and 95% of the total urban population within one mile, of their nearest postal service.
The hon. Lady asked whether the Government will continue with those access criteria. It is some time since the Government have looked at those criteria, but we are doing so through the Green Paper and the responses to it. Our starting assumption was that we would maintain that number of post offices, with one eye on their importance to rural communities, which the hon. Lady rightly raised. However, as it has been so long since those access criteria were set, it is right that we take the time to ask whether they are still right for post offices, communities and postmasters.
On post office provision within the hon. Lady’s constituency, 21 branches are operating in her area, serving thousands of customers each month and helping to support the local economy. She raised my Department’s research on the economic value of that across the country—some £5.2 billion in social value and about £1.3 billion for local SMEs—which is particularly felt in her constituency and others with large rural areas.
Let me turn to Kelsall post office, which closed after the resignation of the operator, the Co-op. I completely understand the painful impact that a branch closure can have on a community. The fear that the service will never return can be disruptive. The hon. Lady comes from a small-business background herself, so she will know that, in a franchise model, there will be fluctuations, particularly in a network made up of so many small businesses and the commercial decisions behind them.
I hope that the Post Office’s advertising campaign to find suitable alternative operators for that branch offers some reassurance to the hon. Lady and her constituents. The time it takes to reopen a branch varies depending on the individual circumstances, but at the end of that process the Government’s access criteria will ensure that, whatever form the network takes, services remain within reach of citizens. I hope that we can find a suitable operator for the Kelsall branch.
The hon. Lady said that the Post Office, like any retailer, faces pressure from continually evolving consumer behaviour and all the other pressures that businesses face, and particularly small businesses. Although access to Government services in post offices is important to many customers, services are not utilised as much as they were in the past, and people are sending fewer letters through the post office network year on year. On the other hand, as she rightly said, cash and banking services have become so important to the Post Office. She asked for reassurance on that. I absolutely recognise how essential that part of the business is for the Post Office. I welcome the banking framework 4 agreement between the major banks and the Post Office, which has come into effect this year. It will mean that the Post Office will be able to increase the income that postmasters receive for delivering banking services, further recognising their important role on high streets.
It is clear that the Post Office must continue to evolve and adapt to shifting needs and trends in local and national economies. That is why our Green Paper, which I mentioned a moment ago, seeks to open a dialogue on the future of the Post Office, from the services that it provides and how we can modernise and strengthen the network, to how we change the culture—particularly with regard to the legacy of the Horizon scandal—and the way in which the Post Office is managed. Thousands of individuals, postmasters and stakeholders have contributed to the consultation, and I thank them for doing so. We will publish our response in the coming weeks.
The hon. Lady also mentioned Malpas post office. I congratulate her on her successful campaign. As she will know, cash services at that branch were reinstated in November.
More generally, we remain completely committed to the future of the Post Office. We are providing £83 million in subsidies for the network this year, and half a billion pounds of investment over the next few years to help the Post Office transform so that it has a sustainable future and to ensure that postmasters are better remunerated, in addition to the subsidy I mentioned, which aims to keep particularly uncommercial and rural parts of the network open. That ambition will, I know, be supported by Members across the House who recognise how important post offices are in anchoring our local communities.
Question put and agreed to.