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.