Natural England

Rural Post Offices: You don't know what you've got until you lose it - 26 July 2000

They bring money into a local rural economy by attracting customers who then spend both in shops attached to post offices and those nearby; they also provide a wide range of vital services for domestic and business customers, such as depositing and withdrawing cash, buying stamps, mailing parcels, paying bills and collecting pensions and benefits. 

The research shows that if a typical rural post office closed:
- a shop attached would lose up to a quarter of its turnover, as well as the inevitable loss of Post Office transaction fees, which could result in the shop folding;
- other nearby shops would lose around 15% of their turnover, damaging their viability;
- even in small settlements of 500-1,000 people the community would incur a cost of over £50,000 a year through lost business and increased travel costs;
- car travel to reach post offices would rise dramatically with 86% of business users using their cars, as opposed to 57% previously, and 66% of domestic customers travelling by car, where 37% did previously.

Commenting on the findings, published in the research note The Economic Significance of Post Offices in Rural Areas, Margaret Clark, director at the Countryside Agency, said: “The social importance of post offices for rural communities is already widely acknowledged. This research demonstrates that they also generate significant revenue for rural economies by attracting customers that then use other local businesses. Their closure would mean many of these customers would be lost and could well inflict economic damage and job losses on the local community. These findings underline just how important the Government’s recent proposals for maintaining the rural post office network are.”

Notes to editors

For further information, or a copy of the research note ‘The Economic Significance of Post Offices in Rural Areas’, please contact Julia Cropley or Nigel Ellway on 020 7340 2909/7 or email julia.cropley@countryside.gov.uk 

- There are some 9,000 rural post offices across the UK, but almost 400 closed last year.

- Last month the Government published a Cabinet Office Performance and Innovation Unit (PIU) report, ‘Counter Revolution’, on the future of the post office network, recommending that the Post Office be required to maintain the rural network and prevent any avoidable rural post office closures.
         
The Countryside Agency is responsible for advising government and taking action on issues affecting the social, economic and environmental well-being of the English countryside.