LTB 687/17 - POST OFFICE: GOVERNMENT FUNDING ANNOUNCEMENT, PO PUBLICATION OF REPORT & ACCOUNTS 2016/17 & GOVT RESPONSE TO CONSULTATION

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LTB 687/17 - POST OFFICE: GOVERNMENT FUNDING ANNOUNCEMENT, PO PUBLICATION OF REPORT & ACCOUNTS 2016/17 & GOVT RESPONSE TO CONSULTATION

No. 687/2017

20th December 2017

Dear Colleagues

POST OFFICE: GOVERNMENT FUNDING ANNOUNCEMENT, PO PUBLICATION OF REPORT & ACCOUNTS 2016/17 & GOVT RESPONSE TO CONSULTATION

We would like to update Branches with regards to three developments this morning:

Government announcement of Post Office funding for the next three years
Publication of the Post Office Report & Accounts 2016/17
Publication of the government response to the Post Office Network Consultation 2016.
Significant Reduction in Government Funding for Post Offices

Today the government has announced the funding package for the Post Office for the next three years (April 2018 to March 2021) which unfortunately falls short of the amount required to secure the future of the Post Office network (the announcement is attached to this LTB for your information). In total, government funding (subject to the EU state aid clearance process) will be £370m for the next three years, including a paltry £210m for investment and modernisation and £160m network subsidy to support rural Sub Post Offices.

The government announcement is very disappointing, especially when compared with the £640m of funding received for the previous three years and amounts to a significant cut in investment for this vital public service. The reduction in funding will have wider implications in terms of potential further attacks on our members’ jobs, terms and conditions as the Post Office strives to make a profit with reduced publicly funded investment in the network.

Post Office Report & Accounts 2016/17

In addition, the Post Office has today published its annual Report & Accounts for the financial year 2016/17 (attached), which has been delayed due to awaiting confirmation of government funding. Whilst the Post Office Chief Executive Paula Vennells makes a great play of celebrating the Post Office’s move into profit (£13m) for the first time in 16 years, this has only been achieved by privatising Crown Offices and attacking jobs and earnings, including significant reductions in remuneration for Sub Postmasters, with absolutely no strategy for growth and no real upturn in

revenue. The truth is that the Post Office’s approach is one of managed decline and perceived success is built on a totally franchised model with employment standards akin to the disgraceful gig economy.

The Post Office press release and “One Update” communication in relation to the above is attached to this LTB and news articles from Sky News and the BBC. Our Press release reads as follows:

Communication Workers Union: CWU responds to government pledge of the future of the Post Office

A CWU spokesperson says: “While the Post Office and government are dressing this up as good news, in reality the Post Office is facing a significant cut in government funding for the next three years.

“The CWU wants to see a profitable and successful Post Office. But its financial results have been delivered on the back of closures, thousands of job losses and huge reductions in income for subpostmasters. Today’s announcement marks a continuation of this strategy and is bad news for communities that rely on post offices across the country. Far from modernising the network this is managing its decline.”

Publication of Government Response to the Post Office Network Consultation

The government has today finally published its response to the 2016 Post Office Network Consultation (attached). We will be analysing this document along with the PO Report & Accounts and a further LTB will follow.

Post Bank – Our Vision for Growth

The CWU will of course continue to campaign for the government and the Post Office to adopt a strategy of growth, including the establishment of a Post Bank owned by the Post Office, which Labour has committed to introducing.

Any enquiries in relation to this LTB should be directed to Lea Sheridan on 020 8971 7361 or lsheridan@cwu.org

Yours sincerely



Andy Furey – Assistant Secretary

Terry Pullinger – Deputy General Secretary (Postal)

Dave Ward – General Secretary

LTB687-17 – Post Office – Government Funding Announcement – PO Publication of Report & Accounts 2016-17 http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-i/" onclick="window.open(this.href);return false;

Attachment 1 to LTB687-17 – Government Announcement http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-d/" onclick="window.open(this.href);return false;

Attachment 2 to LTB687-17 – PO Annual Report 1617 http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-h/" onclick="window.open(this.href);return false;

Attachment 3 to LTB687-17 – Post Office Press Release http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-k/" onclick="window.open(this.href);return false;

Attachment 4 to LTB687-17 – Post Office Communication – One Update from Paula Vennells http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-u/" onclick="window.open(this.href);return false;

Attachment 5 to LTB687-17 – Sky News Article http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-o/" onclick="window.open(this.href);return false;

Attachment 6 to LTB687-17 – BBC Article http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-b/" onclick="window.open(this.href);return false;

Attachment 7 to LTB687-17 – 6.3861_BEIS_government_response_Post_office_Consultation_2016 http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-n/" onclick="window.open(this.href);return false;

View Online http://emails.cwu.org/t/d-l-uukhtkk-ztkjiuyil-p/" onclick="window.open(this.href);return false;