Future of the Post Office

Debate between Gareth Thomas and Jon Trickett

Wednesday 13th November 2024 Commons Chamber

[Gareth Thomas]

I say gently to the hon. Member that I absolutely recognise his point about the role that bank branches play in communities such as Kendal and about their retreat from our high streets. The banks have a responsibility to work with the Post Office to make sure that communities can have access to the banking services that they need, particularly those offered through the post office. That is one reason why we want to significantly expand the number of banking hubs. On the hon. Member’s point about the post office in Kendal, I simply underline the fact that no decisions have been made about Kendal or any other individual directly managed branch. We expect the Post Office to talk to sub-postmasters, trade unions and other stakeholders about this process, but genuinely I say to him that there are significant additional costs associated with the directly managed branches and it is right that the Post Office looks at that as well.

[Jon Trickett (Normanton and Hemsworth) (Lab)]

When the Minister said that the Post Office was not fit for purpose, it was hard not to agree with him, given the elite contempt that the organisation has shown for the people who worked for it. It dripped with contempt for ordinary folk. When the Minister meets the new management, will he bear in mind the experience of my constituents? I have 23 former mining villages, with chronic poverty throughout. One after another, the banks have withdrawn from every village and small township in our area. We have 20,000 people without a car and—quite honestly—a crap bus service. Many do not have access to the internet either. The only lifeline that they have is the post offices. Will the Minister ensure that there are no further closures from those villages—a withdrawal by the market or by the state—which worked so hard to create the wealth of our country in the last century?

[Gareth Thomas]

I am acutely aware of the responsibility of Government to ensure that every community has access to a post office branch. That is why we are continuing to provide a £50 million subsidy to the Post Office to maintain the network going forward. It is also why we think the Post Office should do more when it comes to providing banking services—it is one of the potential areas for it to grow its business. In that regard, given the retreat of bank branches from constituencies such as my hon. Friend’s, we absolutely think that the banks should work directly with the Post Office to improve the banking offer in all our communities.