Report Published On Post Office Mutualisation

A Government commissioned report has been published today on how best to transfer Post Office Ltd from Government ownership into a mutual run for the public benefit.

The proposals in the report by Co-operatives UK, the trade association for co-operative enterprises, would give the local owners of Post Office branches - the subpostmasters - together with employees, charities, customers and local communities, a much greater say in how the network is run.

Ministers are concerned that the Post Office is being held back by the current structure of Post Office Ltd, the Government owned company that develops and provides products and services which are delivered through the UK’s 11,500 Post Office branches.

In recent months Co-operatives UK have been seeking views from the National Federation of SubPostmasters, retailers, business organisations and a range of experts. They examined employee owned mutuals like John Lewis and customer owned mutuals like the Co-operative Group, and concluded that a hybrid of these two structures would work best for Post Office Ltd.

Co-operatives UK’s Secretary General, Ed Mayo said: "We want to see a first class not a second class Post Office. A mutual, rather than a state-owned, Post Office is one way to achieve that, because over time it can let the people who have the greatest interest in the network share in its success. We welcome the imagination that the Government has shown, but also the understanding of Ministers that this needs careful design and open consultation to succeed.”

Minister for Postal Affairs Edward Davey said: “I welcome this comprehensive report – it paints an exciting picture of what a mutualised Post Office Ltd could look like.

“A radical shakeup to combine elements of John Lewis and Co-operative Group’s ownership arrangements would give those who know the Post Office best a real say in how the Post Office is run.”

The Government is clear that before any changes can be made, the network will need to be put on a more secure financial footing, so that a mutual could build from solid foundations. It believes it is realistic for the Post Office to be in mutual ownership by the end of this Parliament and will conduct a full public consultation later this year. There are protections in place in the Postal Services Bill to ensure that a mutual Post Office will always be run for the public benefit.

Last year, the Government announced £1.34 billion of funding for the Post Office, to maintain and modernise the network. Mutualisation would not prevent the Government from providing further funding in the future.

(BMcN/KMcA)