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Post office closure plans awaited Thousands of post offices 'to go'
(about 4 hours later)
The closure of thousands of post offices is set to be announced next week, with rural loss-making outlets likely to bear the brunt of the cuts. The closure of thousands of post offices looks set to be announced next week, with rural loss-making outlets likely to bear the brunt of the cuts.
The Royal Mail has told the government it could shut 10,000 outlets, under a re-organisation to save money, and still run a viable commercial service. The Royal Mail has told the government it could shut 10,000 outlets and still run a viable commercial service.
But government officials said that level of cuts was "not on the table". The Department of Trade and Industry said that scale of cuts was "not on the table" but the current size of the network was "unsustainable".
The Times reported that the government will propose closing 2,500-3,000 of the existing 14,400 outlets. It is due to announce the details of planned closures on Thursday.
The Department of Trade and Industry is expected to announce the details of planned closures on Thursday. HAVE YOUR SAY I am disabled and don't drive. I use the Post office for getting my money out of the bank. Georgina Bass href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=4953&edition=1" class="">Send us your comments The post office network was 18,000-strong in 1999, but now stands at about 14,000. Outlets are roughly equally divided between rural and urban areas.
Loss-making post offices in rural communities are expected to be targeted, with the closures likely to be phased in over several years. The network is said to be making huge losses, and a current £150m-a-year subsidy for the rural network is due to be withdrawn in 2008.
The UK's existing post offices, which numbered more than 18,000 in 1999, are roughly divided between rural and urban areas. Newspaper reports say the government will propose closing 2,500-3,000 post offices, which is about a fifth of the network.
POST OFFICES IN CRISIS Despite subsidies of £150m, post offices lost £111m in 2005Postcomm estimates 1,500 of 8,000 rural post offices make money72% of sub-postmasters are uncertain about the future, says PostcommRevenue from services withdrawn from post offices fell £168m in past year Closures are likely to be phased in over several years.
Campaigners fear 6,000 outlets are under threat, with the current £150m-a-year subsidy for the rural network due to be withdrawn in 2008. 'Social role'
A long battle by campaigners has seen a petition signed by four million people, calling for rural post offices to be saved, being handed into Downing Street.
The post office network is said to be making huge losses and the government says the 800 smallest post offices are used by an average of 16 people a week.
But ministers have been accused of exacerbating financial problems by withdrawing key contracts such as the Card Account from post offices.
A DTI spokesman confirmed an announcement would be made next week, but said none of the details would be confirmed before then.A DTI spokesman confirmed an announcement would be made next week, but said none of the details would be confirmed before then.
"We recognise the wider social role of the post office in communities," he said."We recognise the wider social role of the post office in communities," he said.
"But also there is widespread recognition that the current size of the network is unsustainable.""But also there is widespread recognition that the current size of the network is unsustainable."
A Royal Mail spokesman said: "The future size of the network depends entirely on the government's decision on the level of funding it's prepared to put out."A Royal Mail spokesman said: "The future size of the network depends entirely on the government's decision on the level of funding it's prepared to put out."
A long battle by campaigners has seen four million people sign a petition calling for rural post offices to be saved.
POST OFFICES IN CRISIS Despite subsidies of £150m, post offices lost £111m in 2005Postcomm estimates 1,500 of 8,000 rural post offices make money72% of sub-postmasters are uncertain about the future, says PostcommRevenue from services withdrawn from post offices fell £168m in past year
Colin Baker, general secretary of the National Federation of Subpostmasters, said a recovery package was needed.
He said local post offices were struggling because more people were shopping on the internet and telephone and in larger towns.
Post offices needed to introduce more modern products and services - as they had done with foreign currency and travel insurance - to keep them going, he added.
The government has been accused of making things worse for post offices with the withdrawal of key contracts such as the Post Office card account, which is used to access pensions and benefits.
BBC political correspondent Mark Sanders said that next week some form of successor to this no-frills bank account would be announced, "in an attempt to soften the blow".