More Post Offices to close

3.09.00pm UTC (GMT +0000) Mon 11th Dec 2006

Save our post offices logo

There has been an angry reaction to reports that thousands of post offices are to be closed to save money. Between 2,500 and 3,000 post offices - mostly in rural areas - face phased closure after a government announcement on Thursday. Royal Mail said the size of the network - which is losing money - depended on the level of government funding. The DTI described the current size of the network of 14,000 post offices as "unsustainable". The network is due to lose a £150m-a-year subsidy for rural post offices in 2008.

Liberal Democrat spokesperson Ed Davey said "Ministers' claims that post offices must close in their thousands are simply wrong. Post offices can be viable if they are set free from Royal Mail restrictions on who they can trade with and given investment boosts to embrace new technologies and fresh business ideas."