Coalition proposes 'Post Bank'

The creation of a 'Post Bank' could help create jobs and secure the future of the Post Office, a new coalition of business groups and trade unions are arguing.

The proposal for a 'community bank', to be run as part of the Post Office Network, was put before a Parliamentary reception yesterday.

The group behind the plan says that a Post Bank could benefit the estimated three million people not served by high street lenders, including pensioners and those living in remote areas, as well as small businesses that depend on local Post Office branches.

The Federation of Small Businesses claims that the bank could also create up to 11,000 new jobs.

It is also argued that the new service, which would offer savings products, loans and mortgages, could help secure the future of the Post Office.

Paul Reuter, national officer of trade union group Unite, said: "There is clearly an appetite for a banking network that would reverse the trend of exclusion of local communities and improve services to small businesses, whilst at the same time supporting and maintaining the Post Office network."

Last year, the Post Office fought off competition from a private firm to be awarded the Post Office Card Account - serving four million benefit claimants - in an attempt to save a further 3,000 Post Office branches from closure.