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Press Release

FSB applauds rural post offices decision

24 February 2006

The Federation of Small Businesses (FSB), the UK’s largest business lobby group today welcomed the decision by the European Commission to permit the Government’s £300 million support package for rural post offices.

The arrangement, valid from April 2006 to the end of March 2008, will safeguard rural post offices and was announced by the Minister for Competitiveness, Barry Gardiner MP, in September 2004. It was given final approval under state aid rules today by the Commission.

Clive Davenport, FSB Trade and Industry Chairman, said:

“Rural post offices are an indispensable lifeline for small businesses. With the declining number of rural bank branches in many areas, the post office is the only option for many firms for their day-to-day banking needs.

“Post offices also generate footfall for surrounding businesses. Keeping them in place is vital and we welcome this announcement.

“However, we are concerned that this deal is only for two years. With the threat to end the payment of benefits through post offices by 2010, a more enduring solution is needed. Maintaining rural post offices is essential for the viability of many small businesses and we hope that the Government and the Royal Mail Group will come up with a plan for the long-term.”



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Federation of Small Businesses

Federation of Small Businesses

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