Thursday 30th January 2025

(1 day, 12 hours ago)

Commons Chamber
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Clive Jones Portrait Clive Jones (Wokingham) (LD)
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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?

Caroline Nokes Portrait Madam Deputy Speaker
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I call the shadow Minister.