Small firms hurt by post office closures

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he closure of village post offices leads to "significant" extra costs for small firms, forces customers to make lengthy journeys and often sparks the closure of a local store, according to research.

Consumer Focus, the statutory consumer champion for UK post users, said customers will be at the sharp end of changes to the network, which is due to undergo a "radical transformation" in the next few years.

A study of closures in Devon found that residents were generally pleased with "outreach" services, brought in to mitigate the loss of a post office, although they were seen as being a "downgrade".

Small firms faced significant costs travelling to other post offices, other customers had to travel a long way, or rely on a lift from neighbours to find an alternative, while in most cases, a village shop inside a post office also closed, the research found.

Some communities in Devon affected by the recent closure programme showed "great resilience", with community shops opening, while the county council developed a support scheme for the provision of postal services.

In 2007, 45 post offices in Devon were closed, 12 per cent of the county's total, and a further 38 were replaced by an outreach service.

Around 2,500 post offices closed across the UK by the end of 2009, 500 of which were replaced with an outreach service.

Andy Burrows of Consumer Focus said: "The Post Office network is due to undergo a radical transformation in the next few years. Although this programme won't involve any closures, consumers will inevitably be at the sharp end of any changes to their local post office service. Now is the time to look ahead and agree what can be done to ensure this programme of change is implemented as smoothly as possible for consumers.

"The starting point must be a planned approach which gives local people and authorities the chance to anticipate and tackle problems that may arise.

"Devon County Council's response to the closure programme kept a post office service alive in many areas. The council provided funds and co-ordinated advice from other organisations to protect post offices and give community shops the best chance of thriving. It was particularly successful at getting the local community involved to ensure the long-term future of these outlets.

"The single most important lesson is that the better the impacts on local communities are understood, and the more clearly local people's voices are heard, the more successful the outcome will be. That will be as important for a conversion as it was for a closure programme."