Post Office Closures: More to Come and Banks Too

Government fails again to address overlap interests

Today’s announcement of 2500 post office closures was to be expected, given the government’s uncoordinated removal of income generating business from the network. More can be expected in the future unless ministers act to resolve the block to further co-operation with the banking sector. Note 2.

Although communities impacted tend to be larger in the case of bank closures, the government has stood by and allowed thousands of branches to go with similar ‘knock-on’ effects for the sustainability of retail and other community services.

Derek French Hon. Director of the Campaign for Community Banking Services (CCBS) said:-

“For banks, neutral shared branching offers a viable and proven alternative to closure and some potential benefits for rural post offices. Following the Treasury Committee’s recommendation last month, there is no excuse for not trialing it urgently.”

Since 2002 CCBS has presented a variety of ideas to increase banking income at small post offices but neither Post Office Limited nor government has been responsive.

Contact:  :   Derek French  01582 764760

Notes for Editors:

1. CCBS is a coalition of 29 national organisations concerned about bank branch closures, community sustainability and financial exclusion.
2. As post offices now sell their own financial services in competition with the banking sector, banking at post offices is not available to the majority of current and business account holders.
   
3. Shared branches provide a common counter service for customers of several banks: the model has been validated in the UK and operates in the USA.
4. In the last 10 years the traditional high street banks have closed over 2500 branches, 200 since January 2005 and more are planned.