Government plans to close thousands of post offices would be a ‘body blow’ for many small businesses, it has been claimed.
There are currently around 14,000 post offices with the Royal Mail network, which is said to be facing huge losses.
However, it has been widely reported that the Royal Mail has told the government up to half the country’s post offices should be closed in a bid to cut losses.
The Forum of Private Business (FPB) has expressed concern that many smaller businesses in rural areas may suffer as a consequence of the closures.
“It will obviously by a body blow for small businesses in rural communities,” said a spokesperson for the FPB.
“The more geographically isolated businesses will have to look at alternatives to the way they do their banking.
“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.”
The Royal Mail said that the future size of the post office network was dependent on the level of financial support from the government.
The Department of Trade and Industry (DTI) is yet to make an official comment on the possible closures but said the postal network’s current size was ‘unsustainable’.
An official announcement from the DTI is expected on Thursday.
© Crimson Business Ltd. 2006