The Liberal Democrats voted in favour of a £2 billion plan to safeguard the future of the Post Office Network and the Universal Service Obligation at their Spring conference in Harrogate. 

The debate came just 2 weeks after the Royal Mail’s Chief Executive warned that 10,000 branches could close over the next 4 years.

The plans will see:

·        The establishment of an investment fund, likely to be up to £2 billion, from the proceeds of shares to modernise branches.  This will provide support for opening new Post Office branches where there are serious gaps in the existing network, and start-up investment capital for sub-post offices wishing to diversify into offering additional services to local communities;

·        Post Office Ltd separated from Royal Mail Group, with the retention of Post Office Ltd in the public sector, giving post offices the opportunity to develop new business;

·        The establishment of a shared ownership model for Royal Mail with a 51% majority of shares divided equally between the Government and a trust for Royal Mail staff.  24.5% of the shares would be sold directly to staff and small investors, and 24.5% offered for general sale;

·        A statutory guarantee to protect the universal service obligation (USO);

·        Powers enabling Postcomm to place a levy on other operators who do not undertake the USO to pay towards its cost.

Commenting on the proposals, Liberal Democrat Shadow DTI Secretary, Norman Lamb MP said:

“We are witnessing the collapse of the Post Office network and the Liberal Democrats are the only party who are offering practical solutions to reverse this decline.