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MPs narrowly reject post office motion
MPs have rejected an Opposition motion protesting at plans to close 2,500 post offices by just 288 votes to 268, slashing the government's majority to 20.
Shadow business secretary Alan Duncan had earlier called on Labour MPs to rebel, noting that as many as 90 had campaigned against proposed closures in their own constituencies.
The Conservatives spokesman accused the government of hypocrisy as many ministers are campaigning to have branches in their seats saved.
The government has said it is legitimate for ministers to work to influence local decisions in their capacity as constituency MPs while supporting the overall programme.
Ministers say that the programme is needed to save the network's £150m-a-year subsidy and cut its estimated losses of £4m a week.
But shadow business secretary Alan Duncan said Labour MPs should "put constituents above party politics".
"We know which Labour ministers and MPs are against post office closures. We will see today the true extent of their conviction," he told MPs.
"It is all well and good Labour MPs issuing warm words but now we have a chance to act together to save our post offices."
Criticised over the move during prime minister's questions, Gordon Brown claimed "we've got to take action" on 800 post offices used by about 16 people a week.
Business secretary John Hutton acknowleged that the closures were "regrettable" but insisted that post offices would still have "unparalleled reach into every community", performing a social and economic role.
Pointing to millions of pounds of losses, he said that the government could not afford to ignore changes "of this magnitude".
"We recognise the social role of post offices. But we have to strike the right balance here," he added.
Business
Duncan said the closures were "as important for urban communities" as for rural ones because there was often an alliance between a post office and a shop.
"It is more often than not in tandem and in parallel with the closure of the post office the closure of the shop as well," he said.
The Federation of Small Businesses has also warned that small businesses would be affected by the closure of their local post office.
"Politicians of all parties have gotten themselves into a real pickle over post office closures," said chairman John Wright.
"This is about more than just the post office network. Each post office generates footfall for other local shops and businesses. We already face the loss of up to 50,000 small shops by 2015.
"The prospect of additional post office closures is yet another nail in the coffin of our local high streets."
Evaluation
Speaking to ePolitix.com ahead of the debate, Conservative spokesman on post offices Charles Hendry said: "What we are looking to do in our debate is say that the Post Office closure programme should be suspended whilst a full reassessment is carried out over the whole way in which the whole closure programme has been taken forward.
"We think more time is needed at this stage to re-evaluate the entire process."
Hendry said more business could be brought to the Post Office network, including services for local authorities and new financial services.
Sub-postmasters, he said, "are much keener on relying on more business than on subsidies".
"There will continue to be a need for subsidies but the government has got this the wrong way round and is managing the decline when we should be looking to see how we can build the network up," he added.
Tory leader David Cameron on Tuesday visited a post office in London earmarked for closure.
London mayor Ken Livingstone announced on Monday that he is mounting a legal challenge against plans to close 171 post offices in the capital.
Safeguard
Meanwhile, the Liberal Democrats have set out plans to modernise Royal Mail and protect post offices.
The party set out proposals to give post offices more freedom in using all mail delivery companies by de-merging the network from Royal Mail.
Under the proposals, a 49 per cent stake of Royal Mail would be sold to the private sector, with a further 50 per cent available to an employee trust.
The Lib Dems also pledged to "ensure that the Post Office network is the cornerstone of the programme to provide every UK citizen with access to a basic bank account".
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