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Daily Record
Daily Record
Politics
Chris McCall

Post Office subsidy demand as SNP lead cross-party call to halt branch closures

The SNP is leading cross-party demands for Post Offices to receive more funding to save them from closure as lockdown rules are tightened.

More than 1000 of the lifeline branches - many of which are contained within shops - were closed during the summer across the UK as footfall in high streets across the UK plumetted.

Now a group of MPs and peers have signed a letter calling on UK chancellor Rishi Sunak to increase the network's public subsidy, due to end in March 2021, above inflation.

It comes as official figures show that in the first full month of lockdown in April, 651 branches shut their doors. By the end of July, 1610 branches were closed across the UK.

Figures show that for the past three months, Scotland has had the highest number of closed branches.

Post Office Ltd receives an annual public subsidy to keep local branches open to ensure communities are still able to access vital services they provide. Since 2016/17, the public subsidy has reduced from £80m to £50m.

SNP MP Marion Fellows said: “During the Covid pandemic, Post Offices and its staff have shown just how essential they are and how much communities rely on them.

"The Chancellor must heed our calls and increase the public subsidy of the Post Office to protect the network.

“As the sole shareholder of the Post Office, the UK Government cannot idly sit by and allow the valued service be run into the ground. People from urban and rural communities across Scotland and the UK rely on Post Offices.

“They must be maintained and funded as a public service – not as a private, commercial business – particularly at a time when we could be dealing with the aftermath of a global pandemic and economic crisis.

“The Post Office network has been hamstrung by temporary closures as sub-Postmasters hand in their keys and replacements cannot be found.

"The Post Office network needs investment and a vision for the future – not managed decline towards privatisation.

“Communities and businesses cannot afford to go without the services Post Offices provide.

"Their financial services especially are essential for local economies and access to cash as banks abandon high streets. The UK Government should build on this and strengthen the Post Office’s place in communities.”

The Record has asked the UK Government for comment.

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