16 September 2004
Trade and Industry Secretary Patricia Hewitt today announced a £300m support package to help rural post offices.
The investment will be made available from 2006 to 2008, extending the current three-year £450m package.
The Government has decided to extend the funding to properly analyse recent pilots of new service structures. This will allow well-informed decisions to be taken towards a more sustainable, responsive and flexible post office network.
The Trade and Industry Secretary said the government were "fully committed" to providing rural communities with the services they need. But she warned that the rural post office network continues to face "real challenges":
"For many individual offices, the number of customers they serve is simply too small to make the business attractive or sustainable.
"As people access services in different ways, new ways to deliver services more efficiently and effectively are clearly needed."
The announcement was made via a written Ministerial statement presented to Parliament this morning.
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