1 week ago
Big changes are on the horizon for the Post Office. Up to 115 branches across the UK, including 32 in London, could soon face closure as part of a nationwide shake-up aimed at restructuring the taxpayer-owned business.
This shake-up could impact familiar London spots like Baker Street, Brixton, Croydon, and Kennington Park, raising questions for locals about the future of their nearby branches.
The closures are part of a strategic review led by the Post Office’s new chairman, Nigel Railton. The aim? To make the business more financially sustainable. Right now, nearly half of its branches aren’t turning a profit, and the Post Office reported pre-tax losses of £81 million last year. Railton sees this as a moment for a “fresh start” and a “new deal” for the organisation, but that plan could mean cuts and significant changes across its branch network.
The plan suggests that these branches, currently managed directly by the Post Office, could transition to franchise arrangements with operators like WHSmith or other third-party businesses taking over. This restructuring comes as the Post Office faces tough competition from private parcel delivery companies and a dip in traditional mail use, challenges that are affecting its bottom line.
However, the proposed closures and job cuts come at a sensitive time, with the ongoing Horizon IT scandal inquiry still unfolding. Between 1999 and 2015, hundreds of sub-postmasters were wrongly prosecuted due to errors in the Horizon computer system, which falsely flagged financial discrepancies. This long-running inquiry is nearing its final stages, and the Communication Workers Union (CWU) has slammed the timing of these closures as “immoral” and “tone deaf.”
The Post Office’s reliance on government subsidies has also increased in recent years, as revenue has been hit hard by modern shifts toward mobile banking and contactless payments. Railton’s vision, however, includes potentially filling gaps left by bank closures on high streets, although there’s debate over whether this strategy would be sustainable.
For now, the Post Office is in discussions with the government about future funding and support. But for those whose local branches are at risk, the proposed changes mean facing an uncertain future. It’s a moment to stay informed and make your voice heard as London faces this latest shake-up.
London branches facing possible closure: