Future of the Post Office

Chris Vince Excerpts

Monday 14th July 2025 Commons Chamber

[Gareth Thomas]

I am grateful to the hon. Lady for her welcome for the Green Paper. She rightly underlines the significance of the Post Office, particularly to the digitally excluded, to the elderly and to people in rural areas. Given the other part of my ministerial brief, which is on small businesses, I recognise just how important the Post Office is to small businesses up and down the UK.

The hon. Lady also underlined the significance of banking services for the Post Office. I hope I have made it very clear today that we think that there is an opportunity to go even further to bring more banking services to all our communities through the Post Office.

The hon. Lady asked about what happens when individual post office changes are being contemplated. A set of consultation arrangements has been in place for some time, and we are not seeking to change it. Whenever an individual post office changes, I recognise that it can be unsettling for local communities; there is always an appetite for that branch to be put back in place as quickly as possible. It is therefore important that whenever such a change is contemplated, the Post Office moves quickly to engage with local communities, including the hon. Member who represents the community.

On financing, we have set aside at least £500 million over this Parliament to invest in the Post Office. More than half of the network is loss-making; not enough was being provided to the Post Office to fund the network, which is why we increased the funding to cover the loss-making part of it last year. We have done so again this year and will continue to do so.

[Chris Vince (Harlow) (Lab/Co-op)]

I thank the Minister for his statement. As a fellow Labour and Co-op MP, I welcome the inclusion of mutualisation among the long-term ideas for the Post Office. Does he agree that post offices, particularly in rural communities like Little Hallingbury in my constituency of Harlow, are a vital part of the community and that they therefore lend themselves to that model of business?

[Gareth Thomas]

I commend my hon. Friend for championing the Post Office branches in his constituency. He rightly underlines the importance of branches in rural communities; they have an essential role in communities up and down the UK.

As my hon. Friend will recognise, I have some history in the area of mutualisation. I am sympathetic to mutuals; I do think that it is important that we address the immediate challenges that the Post Office faces in its financial and operational sustainability before we contemplate long-term changes. There are risks with mutualisation, so we need to consider the pros as well as the cons before making any long-term change, but that is why the Green Paper is important: it will allow that debate to begin.