In his speech to the Labour conference in Brighton on Tuesday, Gordon Brown unveiled plans to develop the Post Office into a leading financial services player through its 11,500 branches. He said: “I want the Post Office to play a much bigger role, bringing banking services back to the heart of people’s communities.”
The Government has already committed £1.7bn of funding to the Post Office.
Brown also set out plans to develop a National Care Service, offering elderly people free personal care in their own homes.
But Building Societies Association director general Adrian Coles says the mutual sector is already the “people’s bank”.
He says: “Brown will need to make sure his proposals do not unfairly penalise building societies and undermine their valuable contribution.”
Association of Mortgage Intermediaries director Robert Sinclair says the plans are a good idea so long as the PO sticks to simple products. He adds: “If it strays into investments, I would expect the same level of qualification, training and professional standards as the rest of the financial sector.”