From Mike Bomford, Exeter 382173, September 02, 2008

Nationally almost half our rural post offices are combined with village shops, but research by Devon County Council indicates that only a few shop owners in Devon feel that their businesses will survive the loss of income and associated footfall where post office services in their shops are removed.

Post Office Limited's (POL) Network Change Programme has already seen some post offices close outright, with others that are part of their local shops continuing to be run by the shop owner as a partnered service but with no direct support from POL.

The new terms for these shop owners offer minimum financial reward and are making their village shops vulnerable to closure.

But today Devon County Council has agreed a strategy to support shop owners who continue to offer a post office service to their community, a partnered service, even though they have closed as a brand Post Office.

This includes a series of short term practical solutions to support local shops and communities, including:

Launch of a business advice scheme for shop owners, whose businesses provide a partnered post office service, complemented by annual grants of up to £5,000 for up to three years. The grant scheme is thought to be the first of its kind in the country.

Shop owners must apply for the Council's assistance and their circumstances must meet certain criteria. See Note to Editors

The Council anticipates that there are around 12 village post office / shops that would meet their criteria and that with business advice and grants for up to three years, those businesses should have every chance of remaining sustainable and viable.

The Council is also considering whether any changes can be made to existing public and community transport to make it easier for people who have lost their post office services to travel to or from the nearest alternative.

They are also considering running a campaign to encourage people to use their local post offices and highlighting the possibility that services could be lost if not used.

And they will be working with Credit Unions to consider ways in which they might support the remaining Post Office network in Devon.

Councillor Brian Berman, who has the Council's Executive responsibility for Communities, paid tribute to the combined effort of the partnership of Devon organisations who fought hard to get the best outcomes from POL.

He said:

"Our group has worked very hard to try to get the best outcomes for local communities and we very much regret that POL has not agreed with our assertions to keep many important post offices open.

"We are pleased however to support those communities for whom loss of their local post office would probably mean loss of the only shop in their village.

"The business advice and the annual grants should provide sufficient support to keep those businesses running, with a view to helping them sustain profitability. But I encourage people to use their local shop and post office services, otherwise I fear that they may lose them should further rounds of efficiencies from POL follow."

Contracts with POL have not yet been finalised so the Council is not yet in a position to announce which post office / shops they will be supporting.

NOTE TO NEWS EDITORS

Working in partnership with an organisation such as the Rural Shops Alliance, the Council's strategy includes launch of a business advice scheme for Operators complemented by annual grants of up to £5,000 for up to three years. This scheme would not be available to Core Subpostmasters. Due processes would be put in place which would involve the Operator making an application for grant and that application meeting a criteria which as a minimum might be:

        that Post Office Limited has closed the Post Office and a Partner Outreach Service has been introduced with the support of a Core Subpostmaster;

        where the loss or reduction in service would disadvantage vulnerable people (based on ONS data) and have a negative environmental impact;

        that the Operator produces financial information to satisfy the Council that the business would not be viable in the short term without its financial support;

        that the Operator commits to running the Outreach Service until March 2011 (when Government funding ceases) and if s/he ceases trading during that period the monies or a proportion (to be specified in the contract) would be repayable;

        that it is the only convenience store in the community which is open for a defined number of hours and days each week;

        there is evidence of community and Parish Council support;

        that they access any entitlement to business rate relief.

At the time of preparing this report it is anticipated that around 12 village post office / shops would meet these criteria. Over three years it would be the intention that the business would be profitable, in order to preserve, as far as possible, the retail service to the local community.

Grants would be lawful under Section 2 of the Local Government Act 2000. In summary this gives the Council the power to do anything which it considers is likely to achieve the promotion or improvement of economic or social well being in either the whole or part of the Council's area. In determining whether or how to exercise this power the Council must have regard to its Sustainable Community Strategy.

There is considerable interest in the grant scheme which we understand would be the first of its kind in the country.