Post office speculation grows

Speculation over the future of Britain's post offices is growing amid reports of a fresh round of closures.The Government is expected to announce next week the level of its support for the network, which has fallen from more than 20,000 to about 14,500 in past years.The Royal Mail has told ministers that post offices are losing millions of pounds a week despite a recent closure programme.The Government spends £150 million a year on the UK's 9,400 rural post offices in a support package which runs out in 2008.Trade and Industry Secretary Alistair Darling is to tell MPs next week how much money the Government is prepared to give the Royal Mail. The crucial decision will help the Royal Mail plan for the future size of the postal network.Reports that half the country's post offices could close were described as "pure speculation" by all sides in the industry.The leader of the country's sub postmasters called on the Government to give a clear statement next week which will help the industry plan for the future.Colin Baker, General Secretary of the Federation of Sub Postmasters, said reports were "unhelpful speculation" and said he believed no one really knew how many post offices would close.Mr Baker said: "This is not about closures - my main concern is what will happen to the rest of the post offices. Whatever happens we need a sustainable network otherwise we will be back again in the same position in three years time."Post offices touch 26 million people's lives every year and in my view helping them is a good use of taxpayers' money."We want to work for a living and sub postmasters don't want handouts but we believe the network should be supported."© Independent Television News Limited 2006. All rights reserved.

ITN | December 9, 2006

Tags:. .tell. .general. .close. .again. .millions