14/12/2006

Losses force Post Office closures

Around 2,500 of the UK's post offices are expected to close by 2009 due to financial losses.

The Trade and Industry Secretary Alistair Darling today told MPs that the cuts were needed because of substantial losses of around £4 million a week.

He also announced plans of a five-year investment package of £1.7 billion as well as local consultations on restructuring plans to help the Post Office modernise and restore profitability their main branches.

As part of this, Mr Darling said that he intended setting up around 500 outlets for small, remote communities such as mobile post offices and services based in local facilities.

The government also said that they eventually wanted 90% of the population to live within one mile of a post office, with 95% of those living in rural areas to be no more than three-mile from a post office, possibly six in very remote areas.

The closures are likely to begin next summer.

(EF)

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