Urban post office closures have "devastating impact" - commercial mortgages

04 December 2006

While the number of closures of rural post offices has increased in recent years, a new report has forecast the impact closing urban post offices will have on local economies.

Research conducted by the new economics foundation (nef) reveals that the contribution urban post offices make is often overlooked, while for every rural post office closure - a further eight urban post offices are closed.

Many investors in post office businesses, including those with commercial mortgages, may lose out further when the government withdraws the Post Office Card Account, considered to be a vital source of income for urban post offices, the report claims.

Commenting on the situation facing urban post offices, Guy Rubin, senior researcher at nef said: "Their closure can trigger a ''tipping point'' leading to a downward cycle that leaves ghost communities with very shops and services left."

The organisation estimates that each post office saves small businesses in the local area approximately £270,000 each year.

Liberal Democrat small business spokesperson Lorely Burt said that post offices ought to be given greater "flexibility" to enable business owners to compete and adapt to the changes seen on the high street.