Post office closures ''threat to rural business'' - commercial mortgages

11 December 2006

Proposals made by the government to reduce the number of post offices in the UK have been criticised by a business experts.

The Forum of Private Business (FPB) argues that post office closures in rural communities will have a negative impact upon businesses in the local area, Startups.co.uk reports.

In a move that could affect investors, such as those with commercial mortgages, a spokesperson for the FPB said that "geographically isolated" businesses may no longer be able to rely on services provided by the post office.

"It could push them towards more efficient ways of banking, such as use of the internet, but that is not always a viable option for many businesses," they remarked.

The Times reports that the government plans to oversee the closure of between 2,500 and 3,000 post office branches over a number of years.

A spokesperson for the Department of Trade and Industry said that the existing system was "unsustainable".