Post Offices: Franchises

Department for Business, Energy and Industrial Strategy written question – answered on 6th November 2018.

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Photo of Rachael Maskell Rachael Maskell Shadow Minister (Transport)

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will enable Post Offices that make a profit to remain as a Crown post office rather than being franchised.

Photo of Kelly Tolhurst Kelly Tolhurst Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The Post Office has commercial freedom to deliver this strategy as an independent business. The decision whether to franchise a Crown post office is an operational matter of commercial judgement for the Post Office.

There are over 11,300 branches (almost 98% of the total network) already operating successfully on a franchise or agency basis. Franchising is part of the Post Office’s modernisation programme designed to improve customer experience while putting the network on a sustainable footing and reducing the burden to the taxpayer. This helped Crown branches move from a £46 million loss in 2012 to a break even today.

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