Local Post Offices

Caroline Nokes Excerpts

Thursday 30th January 2025 Commons Chamber

[Maureen Burke (Glasgow North East) (Lab)]

I thank the hon. Member for Taunton and Wellington (Gideon Amos) for securing this very timely debate on the future of post offices. Sadly, few of us have come here today with positive experiences; instead, alongside our constituents, we are concerned about the declining presence of post offices in our communities. In recent times the Post Office has been in the news for all the wrong reasons, with no worse example than the Horizon IT scandal—a shameful, unforgivable wrong done to 900 postmasters, which undermined public faith in the service.

However, public faith in the Post Office has been betrayed in other ways too. The recent speculation on the future of directly managed branches has caused genuine panic and concern to my constituents. I appreciate efforts by the Post Office to reassure people that no formal decision has yet been made, but I fully understand why so many of my constituents believe that closure or service reduction is inevitable. So many post offices have already shut their doors across the UK as the directly managed branch model has been replaced, and that shift towards franchising has left many communities fearing that the post office is no longer a permanent fixture in their high streets or shopping centres. That is because what was once a simple public service has increasingly had its future decided by profitability, rather than the needs and demands of the community, and yet for my constituents, the post office is more than just a place to send parcels and letters; it represents a trusted and valued institution. That is why the Post Office has been around for nearly 400 years.

When Post Office officials emailed me to say that directly managed branches were flawed because they had “no retail offering”, it felt as though there was a disconnect between those who use the service and those who manage it. The No. 1 duty of the post office should be to provide a public service. Whether retail offerings are available in addition should be a secondary consideration, not something motivating the closure or outsourcing of these branches.

Given the news that WH Smith, which manages around 200 post offices, is looking to sell all its high street stores, the franchising model ought to be reviewed as a matter of urgency. I was already concerned about the future of our post offices, but this news only compounds my fears. As with the directly managed branches, my thoughts are with those employed in the WH Smith branches, who will be feeling anxious about what this news means for them. Post Office officials have confirmed that they are in talks with relevant trade unions regarding the ongoing consultation, but I sincerely hope that those are genuine discussions and that the concerns of the workforce are listened to carefully.

In an area such as Springburn, which already has a high unemployment rate, it would be unacceptable for local jobs to be lost. The Springburn Crown post office is the last directly managed branch in my constituency. It occupies a space in Springburn shopping centre, which is well connected and well used by people across the north-east of Glasgow. I recently met the community group Spirit of Springburn to discuss the future of the Crown post office. The community are rightly worried about what closure would mean and raised with me their concerns about the detrimental impact it would have on not just Springburn but the wider north-east of Glasgow. They reminded me that not long ago, the Springburn area had four bank branches. All those branches have now closed—a familiar story in constituencies across the UK, as the last Government presided over 9,500 bank branch closures. Those closures caused massive damage to our high streets and shopping centres and made banking much more difficult for too many. When those closures occurred, the post office was always designated as the place for people to continue to access their bank. In fact, when Lloyds bank announced yesterday plans to close its own high street stores, it said that people should go to the post office to continue using banking services, but how can people do that if there are no local post offices left?

The reality is that Springburn Crown post office really is the last bank in town, and now even that is at risk. It is profoundly unfair for my constituents to find themselves in this worrying situation, and they deserve urgent reassurance that Springburn post office will not close. That is the appeal I am making to the Government today, and it is also the case being made by the local community. Indeed, the vice-chair of Spirit of Springburn, Emma Porter, has written to the Secretary of State for Business and Trade to do just that—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady will recognise that she was on a time limit, and in order to accommodate all the other Members who wish to speak, I am going to reduce it to five minutes. I call Matt Vickers.

--- Later in debate ---

[Mark Sewards (Leeds South West and Morley) (Lab)]

I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this debate. I think my hon. Friend the Member for Bournemouth West (Jessica Toale) has already summarised a lot of the excellent contributions from the Government side.

It is clear from today’s debate that we all know that post office branches are essential to our local communities and the local economy. It saddens me that this Government inherited a Post Office in such a precarious position. Having discussed the matter with senior Post Office staff and the Minister, I know that the organisation is facing serious financial challenges, and I am grateful for the engagement of the Government and the Minister on the issue. That forms the backdrop to the announcement that the Post Office is considering the future of the remaining 115 directly managed branches, which has been referenced countless times today, with a franchising model being considered for them.

I remain especially concerned about the future of the Morley post office on Queen Street. Morley sits in the heart of my constituency. It is a town of around 50,000 people and one of the key locations that people come to for financial services and shops. The directly managed branch is vital for my constituents and for those who rely on the services that it provides, and I have been looking for certainty that it will remain on the high street where it belongs. I know the strength of feeling from my constituents, as more than 2,500 people have signed my petition to keep the branch open. It is clear that after the closure of many bank branches across Morley, the post office is a lifeline for those who need it. The numbers back that up—it is not just my testimony. While other directly managed branches have seen a 34% drop in footfall since 2019 because of the pandemic, the Morley post office is only 3% down. We use our post office.

A word on bank branches and banking hubs: I have been actively pursuing a banking hub for Morley town centre, especially with the recent news that NatWest is due to pull out of the town this year. NatWest even pointed to the post office on its way out and said, “Don’t worry—you have that service there,” despite the threat of closure. I have been in touch with Link, one of the organisations that determines which areas gets banking hubs, and it tells me that Morley does not yet meet the criteria for a banking hub because we still have one branch left. While I have many questions about the criteria, we will have to save them for another debate and another time.

While Morley does not meet Link’s criteria, and while I continue to have those discussions with Link, we cannot have a situation where my post office closes. Thankfully, the continued operation of Morley’s post office will not prevent us from securing a banking hub in future, so there is no reason why we should not do everything in our power to keep the post office open, and that is exactly what I am doing. As I stated, the branch is very much in demand. It is used by local businesses that trade on our high street. Business owners such as Castlepoint, which owns and operates Morley market, have contacted me directly about their concerns about the branch closing.

Post Office research shows that three in 10 SMEs use a post office once a week, whether to post parcels to customers or deposit their cash takings. Losing this branch, which is surrounded by so many businesses in Morley, would make us all worse off. I know that the direction of travel for the Post Office is to move towards the franchising model that we have heard so much about today, and I remain hopeful that a suitable postmaster will be found to take over the branch, but I am also clear that the branch should remain on the high street. Having it in an accessible place in Morley town centre is very important for both residents and businesses, and I will continue to make that case as strongly as I can. It is why I have requested that those interested in taking over the franchise in Morley contact me. I am keen to support their bids, assuming that they are in the best interests of Morley and the town centre.

Finally, I ask the Minister whether there is any threat to the number of services that a directly managed branch can offer if it transitions to a franchised branch. I reassure all my communities in Leeds South West and Morley that I will work tirelessly to ensure that this branch remains open. It is crucial that the services that the post office provides in Morley town centre remain there for many years to come.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

I congratulate my hon. Friend the Member for Taunton and Wellington (Gideon Amos) on securing the debate. The contributions throughout have been unified in highlighting that post offices are a focal point of our communities. They are a vital part of our society and our high streets, with millions of people depending on them every week. They are community hubs, providing access to communication, banking and other vital services. That is particularly important for those with restricted access, such as older people or those in more rural populations with little email connectivity. There are villages that fit that exact description in my constituency of Wokingham, such as Finchampstead, Swallowfield and Hurst. That is why I am deeply concerned about the news that 115 post office branches may be closed, with around 1,000 jobs at risk of being lost. It has the potential to increase social isolation for some of the most vulnerable groups in the UK.

I am especially concerned that the Post Office is reviewing proposals to replace existing branches. Specifically, it is looking for alternatives to its wholly owned branches, and considering franchise arrangements where a third party could take them on instead. That opens up lots of risks. In my constituency of Wokingham, the post office in Hurst was unexpectedly closed a few weeks ago. It was located in a shop that many considered a pillar of the community. Through no fault of the post office, the tenants running the shop had to close its doors. Losing a post office can really harm a small village such as Hurst, and the proposed solution that people should travel to Wokingham or Twyford to access services is simply not possible for all residents. Public transport links are limited, and those who rely on the post office are less likely to drive.

If the Post Office estate is reliant on third parties, it has no control, and there is the worrying potential that situations like that in Hurst will become increasingly commonplace. A future in which losing a local service once means that it is gone forever—very few are replaced once they are gone—with little chance of appeal is a failure of Government policy. That is especially relevant considering the potential loss of 500 WHSmith shops across the UK, many of which house post office branches, such as the one in Wokingham town centre.

The high street is struggling and the Government need to act urgently to turn things around. What steps are the Government taking to ensure that the Post Office is on a sustainable footing for the long term? Will the Minister commit to ensuring that none of the 115 post offices will close until a consultation with each local community has been undertaken? Has the Minister met representatives from the Post Office to draw up plans in case it loses hundreds of its sites due to WHSmith’s financial issues?

The BBC reported today that Ofcom has proposed cutting the delivery of second-class letters to every other weekday and scrapping deliveries on Saturdays. That would harm services for millions of households and small businesses. Royal Mail executives should be working night and day to turn the company around and fix the postal service. The new owners agreed to the existing delivery targets when they took over the company, and they should stick to them. I would appreciate it if the Minister could address my points and offer reassurances that our communities will receive the great service they deserve.

Post office branches provide a place to do banking for millions of people across the country, and that is the case in Wokingham, but another area of concern is the lack of resilience in our local financial services. The WHSmith-located post office in Wokingham is too small and the staff are too busy with all their other tasks. One constituent had to wait about 45 minutes to withdraw £15. That is why I and local campaigners like Lynn Forbes hope that we can get a banking hub. However, our application has been declined. If the WHSmith in Wokingham town centre were to close, our already limited options would be reduced further.

Link, which provides the banking hubs, is encouraged within the current legislation to consider the protection of face-to-face banking, but it is not explicitly empowered to take that into account when making a final decision on whether to establish a banking hub. Instead, it just focuses on cash access. Will the Minister explain why the protection of face-to-face services is not considered, and will he introduce further legislation to require their protection?

[Madam Deputy Speaker]

I call the shadow Minister.

--- Later in debate ---

[Gareth Thomas]

Funnily enough, I am aware of that statistic; my hon. Friend makes his point powerfully.

We were clear in our manifesto that that we would seek to strengthen the Post Office network in consultation with postmasters, trade unions and customers, and that remains very much our ambition. That is one of the reasons why we are working closely with the Post Office in providing funding to support the replacement of the Horizon computer system. The Post Office’s future lies particularly in cash and banking. With the right support from the financial services industry and engagement with groups such as Cash Access UK, there is clearly more that the Post Office could offer on the high street through banking hubs and the Post Office network. We are beginning to work with the Post Office to improve its banking offer on the high street.

The Government are strongly committed to ensuring the long-term sustainability of the Post Office. It is a national asset that provides an invaluable public service in all our constituencies. There are certainly challenges ahead, but we continue to work with the Post Office to ensure that it is fit for the future. We always welcome views on the network. I thank those hon. Members who secured the debate and all other hon. Members for their contributions.

[Madam Deputy Speaker (Caroline Nokes)]

I call Gideon Amos to wind up.