BEIS0000074
BEIS0000074
xe
Department for
Business, Energy
& Industrial Strategy
Date: 3 July 2019
Director General: Gavin Lambert
Lead Official: Eleanor Beal / Carl Creswell
Lead Official Telephone‘
Recipient To Note / Comment To Approve / Decide
Kelly Tolhurst MP (Minister) x
Permanent Secretary x
Special Advisers x
OFFICIAL SENSITIVE
GOVERNMENT’S LONG-TERM VISION FOR POST OFFICE LIMITED
Summary
1) The BEIS Post Office Policy team intends to undertake a project to refresh the
Government's vision for the future of Post Office Limited (POL). The Government
has been clear and consistent in its long-term support for POL, alongside
challenging the business on key issues. There has not been a Government
statement on its vision for the Post Office since 2010. We believe that underpinning
Government’s overall approach to POL with a clear long-term strategy, looking
ahead to ~2030, would enable us to: better influence and address key questions
about POL’s future; ensure a consistent, principled approach to emerging policy
issues; demonstrate thought leadership; and provide a foundation for strong, cross-
Government support. With your initial steers, the BEIS policy team will undertake
work to develop the vision over the summer.
Timing
2) Routine - for initial Ministerial input prior to Summer Recess to allow officials to
undertake more detailed work over the summer.
Recommendations
3) That you agree that officials should proceed with work to establish Government's
long-term policy vision for the Post Office.
4) That you agree to meet with officials to provide your initial input on the scope of, and
approach to, this work.
Background
5) The BEIS Post Office Policy team intends to refresh the Government's policy vision
for the future of the Post Office and would like to meet with the Minister to take her
initial views on the proposal outlined in this submission before undertaking work to
develop this over the summer.
6) Rationale. The Government has been clear and consistent in its long-term support
for POL and the role it plays in communities across the UK. However, Government
has not set out a long-term approach to the business since 2010 (see Annex A).
BEIS0000074
BEIS0000074
xe
Department for
Business, Energy
& Industrial Strategy
Having a clear vision would put us in a stronger position to respond to emerging
issues.
7) As Minister, you have been clear with officials that the Post Office needs to be a
relevant brand for the future that operates sustainably. You have also promoted the
key role that BEIS has to play as POL’s champion across Government, including at
last week’s BEIS Select Committee. At the same time, you have raised some
concerns about POL’s governance and handling of key strategic issues, such as the
ongoing litigation.
8) Externally, there has been increasing public and parliamentary scrutiny of POL’s
operations and Government’s approach to the business as sole shareholder. This
has been exemplified by the Select Committee’s Inquiry and the Daily Mail’s “Save
our Local Post Offices” Campaign.
9) As you know, the BEIS Post Office Policy team was established in August 2018 and
has recently expanded to ensure clear policy leadership within BEIS. With POL soon
to appoint a permanent Chief Executive Officer and a likely Spending Review in the
coming year, we would like to take swift action now to develop the Government's
long-term approach to POL. This will put us in a better position to influence the
longer-term strategic planning that POL has started and enable us to champion the
interests of POL across Government.
10)We recommend that the BEIS Post Office Policy team, consulting UKGI as the
shareholder representative, lead the development of the Government's long-term
vision for POL. Underpinning Government's approach with a clear long-term strategy
would:
a) Enable us to set out a clear Government vision for POL’s future and address key
questions surrounding it (for example. the quantum and nature of any post-2021
subsidy to POL, dividend policy, ownership and business model) and ensure that
Government supports the business towards long-term sustainability;
b) Ensure that Government approach is consistent with the long-term strategic work
POL is undertaking, providing the business with the necessary support and
challenge;
c) Ensure that Government’s response to emerging policy issues is proactive,
consistent and underpinned by a long-term ambition and clear principles;
d) Demonstrate that Government is taking a leadership role in POL’s future;
e) Provide a foundation to garner strong, cross-Government support for POL.
11)Scope. A long-term vision would look ahead to ~2030, with an immediate focus on
the next five years. Priority areas would include:
a) Approach to funding, commercial sustainability and business model;
b) Ensuring sustainability of the network and positive workforce relations;
c) Defining and delivering on POL’s social purpose agenda and its role in
communities;
d) Alignment of POL’s activities with Government's wider objectives;
e) Championing POL’s role in the delivery of government and other services.
BEIS0000074
BEIS0000074
xe
Department for
Business, Energy
& Industrial Strategy
12) Approach. We would like to meet with you before Summer Recess to take your
steers on our proposed approach. We would then undertake strategy development
work over the summer period. This work will align with BEIS’s broader approach to
partner bodies and be undertaken in stages. This will enable us to adapt to a
changing political environment as necessary. The Policy team will also ensure that
the development of Government's vision feeds into POL’s own strategy work and
vice versa.
13)/Initial scoping: The team proposes to: undertake background research (for example,
mapping relevant stakeholders, existing policy and approach to POL in BEIS and
OGDs); develop the detailed scope for the vision and a clear workplan to deliver it;
14) Vision development: Officials will work over the summer to develop a draft vision for
the Post Office, undertaking engagement with key internal and external stakeholders
and further research and analysis.
15) Other activities. This will happen alongside the BEIS Policy team’s ongoing work to
strengthen our policy approach to POL. For example, the team will take forward
actions from the POL/NFSP working group in parallel, such as increasing our role
as a champion for POL across Government; and the ongoing Select Committee
Review.
Media Handling
16) At this stage, the work is internally-facing so no media handling is required.
However, we can discuss the option of making announcements related to this work.
Contributors
17)This note is not considered to contain financial, legal, communications or
parliamentary considerations, so BEIS Finance, Legal, Communications and
Parliamentary Unit colleagues have not been consulted.