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Post Offices 'should become business hubs'

post office sign - branches should become "business hubs", says the Federation of Small Businesses
Post offices need to be transformed into "business hubs" in order to safeguard the future of the network, according to the Federation of Small Businesses (FSB).

The group has set out a range of measures that it believes can prevent branches from closing, including establishing a business desk in each post office which would use specially trained staff to advise firms on banking, Government services, insurance, and parcel services.

Other suggestions include broadening the range of financial services available at branches to include business banking, establishing a regular slot with the Government's Business Link service, and encouraging small businesses to meet using facilities at branches.

The measures are part of the FSB Postal Report, which suggests that the Post Office needs to offer more to small businesses - which the FSB says makes up an important part of the customer base.

The group says that its proposals would mean that the Post Office would not need the £150 million Government subsidy which it has been guaranteed until 2011.

FSB national chairman John Wright said: "Making post offices into small business hubs - including dedicated business desks and a full range of financial services - will not only ensure the survival of the country's post offices, but also the communities that they serve."

The proposal is the latest suggestion from the FSB about how to secure the future of the Post Office.

In March, the group was part of a coalition that suggested creating a 'Post Bank'.

Andy Furey, national official for the Communication Workers Union, welcomed the proposals, saying that greater banking capabilities are "essential to the future viability of the network".

"We have long campaigned for the Post Office to be a one stop shop for government services and believe that the skill and experience of post office staff could easily adapt to this exciting role," he added.

IMAGE Rui Vieira/PA Wire

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