Sell-off 'could shut 9,000 post offices'

By BECKY BARROW FOR MAILONLINE
Updated: 03:07 EST, 4 May 2011

Up to 9,300 post offices could close as a result of the Government's sell-off of the Royal Mail, research reveals.

Blow: The deal with Royal Mail is now indoubt.

The dire prediction will worry millions of people living in villages. In many cases, their post office is the only shop and provides a vital service, particularly for those without cars.

The network is already a shadow of its former self, having collapsed in size from 19,000 when Labour came to power in 1997 to just 11,500. But it could shrink even further, according to the research commissioned by the Communication Workers' Union.

It comes as Labour today calls for the plans to sell off Royal Mail to be scrapped, and for the company to remain publicly owned.

The research found most sub-postmasters, who run post offices, typically as part of a small shop, are desperately worried about their future. Their anxiety surrounds the Government's refusal to sign an 'inter-business agreement' between Royal Mail and Post Office Limited.

At present, the two are owned by the same company - and the Post Office relies on business from the Royal Mail.

But the Postal Services Bill does not contain a clause setting in stone the crucial 'interbusiness agreement'.

Within months, Royal Mail could be sold off to the highest bidder, possibly a foreign firm, cutting the historic ties.

John Denham, shadow business secretary, said the Government's postal services policy was 'in utter disarray'.

But Edward Davey, postal affairs minister, said the Government was doing everything it could to save post offices with a £1.34bn funding deal.