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Department for
Business, Energy
& Industrial Strategy
Date: 3 July 2019
Director General: Gavin Lambert
Lead Officiat Eleanor Beal / Carl Creswell
Lead Official Telephone:
Recipient To Note / Comment To Approve / Decide
Kelly Tolhurst MP (Minister) xX
Permanent Secretary x
Special Advisers x
OFFICIAL SENSITIVE
GOVERNMENTS LONG-TERM VISION FOR POST OFFICE LIMITED
Summary
1) The BEIS Post Office Policy team intends toundertake a project to refresh the
Governments 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 Governments 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 workover the summer.
Recommendations
3) That you agree that officials should proceed with work toestablish Governments
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 teamintends to refresh the Governments 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 submissionbefore 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 communitiesacross the UK. However, Government
has not set out a long-term approach to the businesssince 2010 (see Annex A).
Having a clear vision would put us in a stronger position to respond to emerging
issues.
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Department for
Business, Energy
& Industrial Strategy
7) As Minister, you have been clear with officials that the Post Office needs to be a
relevant brand for the futurethat operates sustainably. You have alsopromoted 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 POLs
operations and Governments approach to the business as sole shareholder This
has been exemplified bythe Select Committee's Inquiry and the Daily Mails “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 leadershipwithin BEIS. With
POL soon to appoint a permanent Chief Executive Officerand a likely Spending
Review in the coming year we would like to take swift action nowto develop the
Governments 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 Governments long-term
vision for POL. Underpinning Governments approach with a clear long-term
strategy would:
a) Enable us to set out a clear Government vision forPOL's future and address
key questions surrounding it (for example. the quantum and nature of anypost-
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 Governments response to emerging policy issues is proactive,
consistent and underpinned bya long-term ambition and clear principles;
d) Demonstrate that Government is taking a leadership role in POls 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 sustainabilityand 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 Governments wider objectives;
e) Championing POL's role in the delivery of governmentand other services
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
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work over the summer period This work will align with BEISs 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 Governments 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 forthe 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 alongsidethe 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 internaly-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.