Knowledge Centre

Government scrapes vote on Post Office closures

The Conservatives have lost a bid to suspend the closure of 2,500 sub-post offices via a House of Commons vote.

Although Labour has a 67-seat Parliament majority, the government won yesterday's vote with a majority of just 20. Alan Duncan, Shadow Secretary for Business, Enterprise and Regulatory Reform, claimed that 20 Labour MPs had defied the government and voted in favour of the Tory proposals.

Wednesday's Commons debate had called for the closures to be suspended in the light of "concern and unpopularity" amongst the general public.

"The government has always underestimated the strength of anger on Labour benches against the privatisation and cuts in this essential public service," said rebelling Labour MP John McDonnell.

Meanwhile, retail website Talking Retail reports growing anger among retailers at terms within the Post Office's termination contract for ex-sub postmasters.

Describing the situation for terminated sub postmasters, Rural Shops Alliance chief executive Ken Parsons told Talking Retail: "My understanding… is that the Post Office will reduce your compensation package pro-rata."

"If, say, lottery tickets represent 10% of your remuneration, then they will knock your compensation by 10%," he added.

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