Post office closures could rise

As many as 4,000 further post office branch closures could be set to take place, a committee of MPs has warned.

A report published by the Commons business and enterprise committee on Monday into the future of the Post Office network warned that more closures could occur on top of 2,500 already earmarked by the government.

Such a move would reduce the network to around 7,500 branches, compared with the 14,000 presently open, despite the government aiming to safeguard 11,500 branches from now until 2011.

However the National Federation of SubPostmasters has claimed that 3,000 more post offices could close if the Post Office loses the government's card account contract.

Committee chairman Peter Luff said: "It is essential that the government and Post Office Ltd are singing from the same hymn sheet to eradicate doubts that there will be further closures after 2011."

But he also added that "there could be no compulsion to replace subpostmasters who retire".

Post office minister Pat McFadden explained to the BBC’s Daily Politics Show: "It is possible that profitable post offices will close. It is not perverse if the Post Office network could be helped by the closure of that post office."

Condemning the committee's findings shadow business secretary Alan Duncan said: "This report seems to confirm our worst fears. We've always thought the government has a secret agenda to force through 2,500 closures but then keep going to shut a lot more."