- 2:59 pm
- I beg to move,That this House has considered the future of local Post Office services.I am grateful to everyone for attending this debate on a Thursday afternoon on post offices and their vital role in all our communities across the country. Post offices have long been at the heart of our communities. They provide essential services, support local businesses and serve as vital socioeconomic lifelines, but in too many areas across the country, including my constituency, we face uncertainty over the future of those post offices and are already seeing the erosion of far too many.Post offices contribute an estimated £4.7 billion annually to the UK economy. According to the Post Office, their presence generates an additional £3 billion in spending for the businesses that surround them. In a town like Wellington in my constituency, a post office could add around £1 million to the local economy. Small businesses across the country rely on post offices for banking, cash deposits and parcel services. Nearly a third of small and medium-sized businesses use the post office at least once a week.Of course, the benefits of post offices are not just economic; they remain a lifeline for many, particularly older and more vulnerable people, who rely on post office services to access their pension, send mail and parcels, pay bills, and stay connected. I hear from many of my constituents how much they value our local post offices, and that those post offices provide far more than just postal services.
- I congratulate the hon. Member on bringing this important debate. My constituents are served by Crown post offices in Brixton and on Lordship Lane in east Dulwich. Both those town centres have effectively seen the withdrawal of high-street banks. Would he agree that the erosion of high-street banking services places an even greater emphasis on the role of post offices, and that the Government need to intervene to stop the further round of Crown post office closures if we are to see the banking hubs commitment met across the country?
- The hon. Member is absolutely right, and I will emphasise that point later, because the destiny of banking hubs is wrapped up with that of post offices. Post offices are the nucleus of a town centre, and once they are gone, it undermines the town centre.
- Following on from the intervention of the hon. Member for Dulwich and West Norwood (Helen Hayes), I represent Tiverton and Minehead, a very rural constituency. Dulverton is a classic example of what we are talking about. The farmers used to come down from Cutcombe market, after they had sold their cattle and sheep, and deposit their money in a bank or post office in Dulverton. We just about have a post office there, but no banks. Does my hon. Friend agree that post offices and banks are two sides of the same coin?
- I agree with my hon. Friend. I will comment on that aspect of banking later.I pay tribute to the friendly and hard-working staff in my local post offices on Station Road and in Staplegrove, and in other post offices throughout the constituency. The North Curry post office, with its amazing postmistress, contributes every year to the “Christmas in the Square” event for the village charity and has raised £1,500. These are real community institutions. Their being in our villages and communities, where they offer a warm, friendly welcome and act as a community hub, is important to many people and must not be undervalued.
- The hon. Member makes an excellent point, and I think the nub of his speech is that post offices are not just a banking facility or just a post office; they are a real community hub. I think about the ones in my constituency that I have visited recently—in Ramsden Bellhouse, on Whitmore Way in Basildon or the brand new one on Billericay high street. That is exactly what they are: places where the entire community comes together.
- The right hon. Member is quite right. I know Billericay and its post office, and I certainly support his remarks. Post offices are simply too important to be lost, and we have to ensure that they are not lost in towns like Wellington and Taunton, and elsewhere across the country.Too often, there are deep concerns about the future of local post offices. Today’s announcement about changes to the Royal Mail universal service obligation adds to that uncertainty, creating further pressure on an already fragile network. It is disappointing to see that obligation weakened, with potential knock-on effects on the viability of post offices. That makes it even more important that post offices continue to play a role all throughout the week, in selling stamps and providing postal services, even if deliveries are being cut back.
- I thank the hon. Gentleman for taking my intervention and for the points that he is making. In response to a question I asked, the Government said that more than one in 10 post office services are not provided in what people would recognise as a post office. Some services are provided out the back of a van for a few hours a week, but they are still held up as complete post office services in the figures on post offices and how many people access them. Does he agree that we must provide complete post office services in all the communities that need them?
- I agree with the right hon. Gentleman. There is a risk that the statistics are somewhat skewed by the fact that a parcel drop-off point or a van that visits occasionally may be considered post offices.
- I thank the hon. Gentleman for his generosity in giving way to a number of Members during his important speech. On the proposal to replace Crown post offices, does he agree that franchised post offices are no substitute? In fact, that is a huge risk. WHSmith, which often takes on the franchises, announced this week that it is closing 17 of its high street branches. The move to franchises could be one step away from the complete loss of post office facilities.
- Indeed. I think the hon. Member had read the next sentence of my speech, which was about the post office branch housed in WHSmith on Fore Street in Taunton. That business is potentially up for sale, which poses risks. The loss of such post offices would leave a huge gap across the country, particularly in county towns like Taunton. In the course of his work, will the Minister get concrete assurances from WHSmith that post offices in its stores will be retained following the sale? It is important that the Government get assurances from WHSmith on that point.
- I thank my hon. Friend for securing this important debate. The distinction between Crown post offices and franchised post offices cannot be drawn heavily enough. In my constituency, we lost Crown post offices in Newton Abbot and in Dawlish, and the one in Teignmouth—which I believe is the last in my constituency; all the rest are franchises—is now under threat. Does he agree that the franchise system can provide a useful service but is absolutely no substitute for the full Crown post office service, which must remain?
- I agree. I am sure that the Government will say in due course that, whatever its exact business model, a viable post office is what matters, and there would be some truth in that, but a secure post office, established for the long term, is what really matters.The worries we hear from across the House and the country are not without foundation. We have seen worrying closures across the country. Notably, as has been mentioned, there was a recent consultation on the closure of 150 post offices. The loss of branches means that fewer communities can access vital services. House of Commons data shows that the number of post offices is rising overall, but in the south-west, which has lost more post offices than any other region in England, it is falling.Wellington in my constituency lost its post office in 2019, and we can see the damage caused by that loss. Wellington is not a small town; it has 15,000 residents and is growing fast. Its population has grown by a third over the past two decades according to census data, and around 1,500 new homes have been built there in recent years. It also has a proud history as the home of Fox Brothers & Co, which has been manufacturing the finest flannels and fabrics for over 250 years and also owned its own bank—the Fox bank on Fore Street was the last bank in the country to issue its own banknotes. It is unacceptable for such a town to have no main post office. Losing the post office in 2019 has been a real blow. One constituent told me that he finds it“totally baffling why Wellington Post Office was ever closed”.It is particularly difficult for those without access to a car to visit the nearest alternative at Rockwell Green, a village several miles away. If they do, residents often find that the sub-post office is oversubscribed, with queues out the door. As a small village post office, it was only intended to provide for small numbers, and when it is open, parking has become a bit of a nightmare.
- I was very pleased to support the hon. Gentleman’s application to the Backbench Business Committee for this debate. Does he agree that Crown post offices are one of the last bastions of the civil service in local communities, as they are not centralised? They provide good jobs in places like Wellington in his constituency, and they give support to communities that often have an older population. They have an expertise that franchises simply cannot provide.
- The hon. Lady makes a very good point, and I am extremely grateful to her for helping us to secure this debate. Post offices act as hubs for a whole range of services, and they could arrange for a range of other public services, and often do, which is why a secure, proper post office is so important.As I say, the nearest post office to Wellington is some miles away and very difficult to access. As hon. Members can imagine, there was great relief when Wellington residents were told that they would be getting a new hub opened by an organisation called the Post Office, staffed by staff working for the Post Office, and that there was to be a logo outside the building with “Post Office” written on it, but they were disappointed to find, when they went inside the building, that it was a banking hub that does not provide any post office services. Frankly, people feel misled and let down. Will the Minister instruct the Post Office to review the case for granting Wellington post office the status of main post office? I am convinced from discussions with franchise holders that that would be enough to secure one for Wellington.As we can all see, in this case, there is an obvious and straightforward solution: we should allow banking hubs to offer postal services. There is no fundamental reason why they cannot. They already have post office tills and post office systems. They are run by postmasters and postmistresses, and staffed by post office staff. The one in Wellington even has two banking desks and space for a third desk, presumably awaiting a post office counter. That would be a very good use of the remaining space in a building with “Post Office” written above the door. Perhaps most importantly, having spoken to post office staff, I know that they would be very keen to offer such services in banking hubs.The issue lies simply in such arrangements not having been included in the agreement on banking hubs between the banks, which fund them, and the Post Office, which provides those services. It is not a hugely complex problem. With a bit of effort and ingenuity, which I am sure the Minister and the Government have, this could be overcome, and the system could be made hugely more efficient. There are 76 banking hubs in the UK, and in this way we could significantly increase the provision of post offices at very little cost. Will the Minister ask his Department to develop incentives for banking hubs to offer postal services, especially given that they all have the “Post Office” logo outside the door, even when they do not provide any postal services.
- Several hon. Members rose—
- Order. I am imposing an immediate six-minute time limit so that everyone can get in.