View more on these topics

Post Office could be mutualised

The Post Office could be mutualised under plans being put forward by the Government.

The Postal Services Bill, from the Department for Business, Innovation and Skills, proposes powers necessary to transfer ownership from the Government to Post Office stakeholders.

Business Secretary Vince Cable says: “I’m concerned that the current structure of the company is holding the network back. The interests of the central holding company and locally owned branches are not always aligned.”

Co-operatives UK has been asked to look at options for creating a mutualised Post Office and any new structure would would be subject to public consultation.

Cable says: “I want to start a conversation about how it is run in the future, but it seems to me that the Post Office is ideally suited to a John Lewis or Co-operative Group style structure – where employees, sub postmasters and communities get a greater say in how the company is run.”

The new structure would have certain safeguards placed in its constitution. BIS suggest this could mean an obligation to work in the public interest and not for short-term profits or not being able to sell shares in the mutual.

Liberal Democrat Treasury spokesman Lord Newby called for Northern Rock to be remutualised during the party’s conference in Liverpool.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com