Steven Swinford
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ESSEX county council yesterday revealed plans to become the first local authority in Britain to take over post offices earmarked for closure by the government.
Over the next three years the council will spend up to £1.5m saving 15 threatened rural and urban branches. The move, which was approved by ministers, has attracted interest from more than 20 other local authorities.
The post offices in Essex are among 2,500 branches earmarked for closure nationwide to stem losses of £4m a year. Councillor Stephen Castle, cabinet member for economic development, accused the government of failing local communities. He said: “We’ve already seen a lot of post offices close in Essex, and we decided it was time to draw a line in the sand.”
He insisted, however, that the post offices would not be a burden on local taxpayers. Essex county council will initially spend up to £18,000 a year subsidising each branch, but hopes that over three years they will become self-sufficient. It plans to cut costs by relocating branches to other public buildings such as schools and libraries. Castle said: “This isn’t about swapping one subsidy for another. The problem is that the government and the Post Office haven’t taken time to think outside the box. There is a different way of doing things.”
Postwatch, the industry watchdog, gave the scheme a cautious welcome. Andy Frewin, a spokesman, said: “Anything that keeps the post offices open on a long-term basis has to be a good thing, but is this scheme sustainable?”
The government announced at the end of 2006 that 2,500 post offices were likely to close by the end of this year because fewer people were using them. It is providing the Post Office with a £200m subsidy to offset its losses.
The Post Office said it was willing to work with other local authorities on similar takeovers. Those that have expressed an interest include Kent, York and Lancashire.

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Why should my council tax be used to keep Post Offices open in places where there is no demand. It seems to me that Conservative councilors are using my taxes to keep Conservative Post Masters in a job.
Anthony J, Alton, UK
Individual post offices are not loss making as their self employed post masters are paid based on their sales of their Post Office products. The Post Office plan to reduce its outlets is not based on sound financial reasoning and will only force more of us to queue at there larger already over stretched outlets. A sure road to using our countries post offices less
Jon Thornes, Langworth, Lincoln,
I think this is a really interesting way of protecting the Post Office network, whilst giving it a proper role ... something it has been steadily losing since Government started to use other channels.
matt, london,