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Industry in Parliament Trust dinner
18.45 - 12 February 2014
Dining Room B, House of Commons, London, SW1A 0OAA
Background
We are a member of the Industry in Parliament Trust and as a condition of our membership we are
invited to speak at one dinner.
About the IPT
The IPT is an independent, non-lobbying, non-partisan charity that provides a trusted platform of
engagement between Parliament and UK business. The IPT is dually supported by cross-party
representation of senior parliamentarians on its Board of Trustees, and through the patronage of its
industry supporters. The IPT is non-party political and works with all parliamentarians and businesses
of any sector or size (/PT website, [I HYPERLINK "http://www. ipt.org.uk/about-the-industry-and-
parliament-trust.aspx" ]).
What the IPT aims to do
The IPT creates an environment that supports trusted, open and two-way dialogue between
Parliament and UK business. IPT platforms engage, educate and inform, create lasting relationships
and facilitate the exchange of ideas. Specifically, it aims to:
e Equip parliamentarians from all parties with a greater understanding of commerce and industry
through non-partisan platforms.
e Enable businesses of all sizes and from all sectors to develop knowledge of parliamentary and
legislative processes.
e Enrich policy debates by deepening the dialogue between Parliament and industry.
e Support the efficient administration of government through our Civil Service Attachment Scheme
(ibid.).
Running order for the evening
* 18.50 — Arrive at Portcullis House accompanied by Jane Hill. Nick Maher, Chief Executive of IPT
will greet and escort through to Dining Room B in the Palace and introduce you to Heather
Wheeler MP and Professor John Bryson.
19.00 — pre-dinner drinks.
19.30 — Heather Wheeler MP to call for dinner to begin and opening remarks.
19.45 — Starter is served.
20.00 — Paula Vennells to speak.
20.10 — Entrée served.
20.40 — Dessert served, coffee and petit fours served.
21.30 — Heather Wheeler MP to draw discussion to a close.
The dinner will be a relaxed roundtable discussion, under the spirit of the Chatham House Rules.
Attendees Numbers of Community branches ~ have requested.
Heather Wheeler MP — Chair
‘ituency: South Derbyshire, East Midlands
Party: Conservative
e Heather Wheeler is a member of the Communities and Local Government
Select Committee.
e She attended the DVLA event in the House of Commons in January 2013
and also a dinner in March 2013, where she sat next to you.
e Heather Wheeler has not opened any modernised branches in her
constituency.
e Inthe South Derbyshire constituency there is 18 open Post Office branches;
four of which are in urban areas while the remaining 14 are in rural locations.
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e Hatton Post Office branch is a new Local and is located in Goodlife Pharmacy. It opened for
business on 6 February 2014.
Toby Perkins MP
Shadow Minister for Business, Innovation and Skills
lituency: Chesterfield, East Midlands
2 549
Party: Labour
e Toby Perkins was previously a member of the Communities and Local
Government Select Committee.
« We announced the relocation of Chesterfield Crown branch into the local
WH Smith branch on 4 February 2014. The existing branch will close on 26
March 2014 with the new branch opening the next day.
e Mr Perkins’ office has asked about the provision of chairs for customers in
the new branch as there are two chairs shown on the plans. Customers are
used to the 20 seats in the current branch. We are currently investigating
the possibility of additional seating as there is space that could be used.
e There are 12 open Post Office branches in the Chesterfield constituency with 10 in urban areas
while two are rural.
e Mr Perkins opened Whittington Moor branch in July 2013 and Inkersall in January 2014. Both are
Post Office Main branches.
e There is also a Local branch in Mr Perkins’ constituency at Old Whittington.
e Stavely Post Office has been temporarily closed since November 2013.
e Toby Perkins mentioned the UK banking system at the opening he attended in January 2014 and
recently issued a press release on the lack of trust, poor service and restriction of lending to
SMEs in the sector.
Graham Stringer MP
ency: Blackley and Broughton, North West
12,303
Party: Labour
e Graham Stringer is the former leader of Manchester City Council. He has
been an MP since 1997. A former Cabinet Office minister he currently
serves on several Select Committees including Science and Technology.
e Inn Mr Stringer's constituency there is 11 Post Office branches, all of which
are urban.
« Mr Stringer is opening Middleton Road branch on 14 February 2014. The
YN branch is an on-site Main conversion and opened at the end of January. It is
now open seven days a week with an additional 20 hours a week.
e Moston Lane branch is to convert to a Main Post Office branch, reopening on 28 February 2014.
e Barnes Green Crown Post Office is in Mr Stringer's constituency. The branch was transformed in
November 2013.
Diana Johnson MP
Shadow Minister for Crime and Security
ency: Kingston upon Hull North, Yorkshire and Humberside
2 641
Party: Labour
e Diana Johnson is currently the Shadow Minister for Crime and Security and
was a Shadow Home Office Minister from 2010 to 2011.
* The Kingston Upon Hull North constituency has nine open Post Office
branches, all urban in location. None have yet been through the Network
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Transformation programme although Ms Johnson is keen to open one should the opportunity
arise.
e Bransholme Crown Post Office is in Ms Johnson's constituency. The branch is scheduled to be
transformed in March and will see the addition of an FS room.
Chi Onwurah MP
Shadow Minister for Cabinet Office
Constituency: Newcastle upon Tyne Central, North East
Majority: 7,466
Party: Labour
e Previously a Shadow BIS Minister with responsibilities including digital
infrastructure and now a Shadow Minister for Cabinet Office.
e Before entering Parliament Ms Onwurah worked for OFCOM as head of
telecoms technology.
* The Newcaste Upon Tyne Central constituency has 13 open Post Office
branches, all are urban.
e There is one Main Post Office branch at Barras Bridge.
Blakelaw Post Office is a leavers’ case and the original relocation did not
proceed following discussions with Consumer Futures due to the distance and location of the
proposed site. The Council would like the branch in their Community hub and discussions are on-
going with them.
e North Kenton Post Office branch re-opened on 3 February following a break in service from
October 2013.
e It is proposed to relocate Fergusons Lane Post Office branch to a new Local in March 2014.
e Fenham Road Post Office is to be relocated to a new Main branch shortly.
Clive Betts MP
age Sheffield South East, Yorkshire and Humberside
* Clive Betts is the chairman of the Communities and Local Government
Select Committee.
« There are 14 open Post Office branches in the Sheffield South East
constituency, all of these are urban.
e There are three Main Post Office branches in Mr Betts’ constituency at
Darnall, Frecheville and Woodhouse. Mr Betts opened the Darnall branch in
December 2013.
e Mr Betts’ political interests include local and regional government, housing,
planning, and regeneration.
Guto Bebb MP
Constituency: Aberconwy, Wales
Majority: 3,398
Party: Conservative
« Guto Bebb cites reform of the welfare state, rural development and
regeneration among his political interests.
e In the Aberconwy constituency there are 23 Post Office branches. Of these
20 are rural while 3 are urban.
«There are two Post Office Local branches at Dolgarrog and Llanrhos.
e Llandudno Crown Post Office is in Mr Bebb’s constituency and is due to be
be transformed in August 2014 and will see the addition of an FS room.
e There was previously an issue with Deganwy Post Office branch. The
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subpostmaster wanted to leave and would shut up shop with no notice for weeks at a time. The
branch has now been sold and the issues have ceased.
e Mr Bebb is a Welsh speaker and may be interested in our Welsh Language Scheme that we are
currently consulting on. Further information is in annex A.
James Morris MP
iency: Halesowen and Rowley Regis, West Midlands
1 2,023
Party: Conservative
« James Morris is a member of the Communities and Local Government
Select Committee.
e Before being elected to Parliament he was the chief executive of the local
government think tank Localis.
e Mr Morris cites logal government and localism among his political interests.
e In the Halesowen and Rowley Regis constituency there are eight Post
Office branches and they are all in urban locations.
e There are currently no modernised branches in Mr Morris's constituency but
it is proposed that Halesowen branch is to be relocated as a Local model and the consultation has
recently concluded.
« Hawne Post Office is to transform to a Main branch and open on 20 February 2014 while
Springfield Post Office is to be transformed into a Local branch and open on 3 March 2014.
—
Mark Pawsey MP
ency: Rugby, West Midlands
g 0
Party: Conservative
« Mark Pawsey is a member of the Communities and Local Government
Select Committee.
e There are 19 Post Office branches in the Rugby constituency. 11 are urban
and eight are rural.
e There is one Main Post Office branch in Rugby itself, which Mr Pawsey
opened in July 2013. There is also a Post Office Local branch in Abbots
Farm.
e Hillmorton Post Office branch is to re-open as a Main branch on 24
aN
February 2014.
e Mr Pawsey attended the Parliament event about the Strategy in December 2013.
e Rugby Post Office is one of the branches in the extended current account trial and Mr Pawsey
has expressed an interest in this. He is also interested in learning more about Community
branches.
Bill Esterson MP
Constituency: Sefton Central, North West
Majority: 3,862
Party: Labour
¢ Bill Esterson was a member of the Communities and Local Government
Select Committee between 2011-13.
e Mr Esterson has asked five questions in parliament relating to Post Office in
the past few months. Transcripts are in annex B.
e There are 12 Post Office branches in the Sefton Central constituency. 11
are urban while one is rural.
«There is one Post Office Main branch at Maghull.
« Deyes Lane Post Office in Mr Esterson's constituency is due to relocate as
part of the Network Transformation Programme. It is currently located on a shopping parade and
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Mr Esterson has expressed unhappiness at the new location of a single shop with no other retail
around it.
e Crosby Village Post Office is a former Crown. About 10 years ago it was taken over and the
subpostmaster was given an overpayment on the understanding that it compensated for the lack
of existing retail and on the assumption that it would be built up and the overpayment eventually
withdrawn. The subpostmaster has failed to build up retail and is relying on the overpayment,
which is much smaller than originally. This has impacted on the number of staff and the level of
service in the branch. Mr Esterson is aware of the issues here.
John Pugh MP
ency: Southport, North West
1: 6,024
Party: Liberal Democrat
e John Pugh is a member of the Communities and Local Government Select
Committee.
e There are 13 Post Office branches in the Southport constituency, all of
which are urban.
e There are five Main Post Office branches in the Southport constituency at
Bispham Road, Hesketh Drive, Liverpool Road, Lord Street North and
Preston New Road.
¢ There is also one Local branch at Guildford Road.
e Mr Pugh also has one Crown in his constituency. Southport Crown Post Office is to be franchised
with the new branch going live in WH Smith on 20 February 2014. The new branch is located
upstairs in the WH Smith and Mr Pugh has expressed some concern at the lift facilities as well as
the lack of free parking outside the new branch as compared to the old one (parking is an issue in
the town). Mr Pugh is meeting the SSM on 7 February to discuss the issues but he is not against
the move.
Alison Seabeck MP
Shadow Minister for Defence
Con: ency: Plymouth, Moor View, South West
Majority: 1,588
Party: Labour
e Nowa Shadow Defence Minister, Alison Seabeck is a former member of the
Communities and Local Government Select Committee (2009-10) and
Shadow Housing Minister (2010-11).
e There are 13 open Post Office branches in the Plymouth Moor View
constituency and all are urban.
« The constituency has four Post Office Local branches at Camels Head,
Eggbuckland, Glenholt and Tamerton Foliot.
e Ms Seabeck was concerned about the adoption of open plan working at
Tamerton Foliot and the impact on security. She was advised that the branch would operate with
enhanced security equipment and security processes to ensure that staff and customers can
conduct their business in a safe and secure environment.
e There are also two Post Office Main branches at Southway Drive and St Budeaux.
Andrew George MP
‘ituency: St lves, South West
1,719
Party: Liberal Democrat
e Andrew George is a former Lib Dem spokesman for Food and Rural Affairs
(2002-2005).
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e In the St Ives constituency there are 43 open Post Office branches. 39 are rural and four are
urban.
e In the St Ives constituency there are three Local Post Office branches at Heamoor, Mousehole
and Sennen And Lands End. Marazion branch is currently in consultation until the end of
February concerning an off-site Local branch.
e There are also two Main Post Office branches at Carbis Bay and St Clare Street.
«Mike Granville and SSM Laura Tarling met with Mr George in 2013 to discuss rural issues as well
as Post Office's commitment to maintaining the network. Mr George also recently wrote to Post
Office asking about financial support for rural subpostmasters. The correspondence is in annex C.
e Andrew George has raised some concerns previously about the viability of the Local model. He
was invited to Sennen Post Office Local in September 2013 to see and talk to a positive
subpostmaster that is operating a successful branch.
e St Keverne Post Office is in the St Ives constituency. The subpostmaster had her contract
terminated by Post Office. In August 2013 Mr George wrote to Post Office to ask for the
subpostmaster to be reinstated as the court cleared her of all charges. The correspondence is in
annex D. This case is currently subject to the Initial Complaint Review and Mediation Scheme.
e Penzance Crown Post Office branch is in Mr George's constituency and is due to be transformed
in June 2014. It will see the addition of an FS room and self-service kiosks.
Neil Carmichael MP
Constituency: Stroud, South West
Majority: 1,299
Party: Conservative
¢ Neil Carmichael is a member for the Environmental Audit Select Committee
and cites rural affairs among his political interests.
e In the Stroud constituency there are 26 open Post Office branches. Of these
20 are rural and six are in urban locations.
e In the Stroud constituency there are three Post Office Local branches at
Amberley, Berkeley and Whitminster.
« There are four temporary closures currently in the Stroud constituency. Mr
Carmichael has taken a particular interest in Painswick Post Office branch
and discussions are on-going with a community group interested in taking it on and are seeking
volunteers to help run it. Hardwicke Post Office branch has also attracted local media attention —
One Stop may be interested in taking this on.
e Stroud Crown Post Office branch is in Mr Carmichael's constituency and is due to be transformed
in March 2014. It will also have its FS room refurbished and several self-service kiosks added.
Baroness (Margaret) Prosser OBE
cr. 2004
Life peer 2004
Party: Labour
e During her career Baroness Prosser held a number of positions with the
Transport & General Workers Union rising to Deputy General Secretary.
* Between 2004 and 2010 Baroness Prosser was a Non-Executive Director of
Royal Mail Holdings Board.
Other Attendees
Jessica Northend
Public Affairs Analyst — John Lewis.
e Previously worked at Bellenden and Carers UK.
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e Key John Lewis financial indicators:
The John Lewis Partnership
o Gross sales of £9.54bn, up £811.8m, 9.3%
Revenue of £8.47bn, up £706.9m, 9.1%
Group operating profit of £452.4m up £59.1m, 15.0%
Profit before Partnership Bonus and tax of £409.6m, up £55.8m, 15.8%
Partnership Bonus of £210.8m; 17% of salary (equal to nearly 9 weeks’ pay)
Net debt of £371.9m, down £205.4m, 35.6%
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MERGEFORMATINET ]
Patrick Clift
Head of Communications and Public Affairs — British Property Federation
s
PY 7 e The British Property Federation is a membership organisation devoted to
hh representing the interests of all those involved in real estate ownership and
investment.
Irene Graham
MD for Business Finance and Strategy — British Bankers Association
e The BBA is the UK's leading association for the banking and financial services
sector, representing the interests of more than 240 member organisations with a
worldwide presence in 180 countries.
e rene Graham previously worked at banks including Coutts and Standard
Chartered and joined the BBA in 2010.
Simon Brown
Director - PWC
e Simon Brown previously worked for the Royal Bank of Scotland and Northern Rock.
Professor John Bryson
Department of Management —- University of Birmingham
! e Professor Bryson has been the Head of Human Geography at the University
of Birmingham since 2008
e Prior to that he was Professor of Enterprise and Economic Geography.
e Professor Bryson's areas of expertise include entrepreneurship and
enterprise; local and regional economic development; manufacturing; labour
market and skills; service economy; business and professional services;
design; competitiveness, financial services including community
development finance institutions (CDFls); knowledge economy; small and medium sized firms.
Economic Indicators
GDP figures
e On 28 January 2014 the Office for National Statistics released the first estimates for Q4 2013
GDP growth showing a 0.7 per cent increase. Overall growth in 2013 was 1.9 per cent and 2013
was the first year in which the economy grew in all four quarters since 2007.
« Growth is broad based with all sectors, except construction, growing by between 0.5 and 0.9 per
cent.
o Manufacturing grew fastest at 0.9 per cent;
o Services grew by 0.8 per cent;
co Agriculture grew by 0.5 per cent; while
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© Construction was down 0.3 per cent on the quarter.
In Q4 2013 GDP was estimated to be 1.3 per cent below the peak in Q1 2008. From peak to
trough in 2009, the economy shrank by 7.2 per cent.
GDP was 2.8 per cent higher in Q4 2013 compared with the same quarter a year ago (ONS,
Gross Domestic Product Preliminary Estimate, Q4 2013, 28 January 2014, [ HYPERLINK
“http://www.ons.gov.uk/ons/rel/gva/gross-domestic-product--preliminary-estimate/q4-2013/stb-
gdp-preliminary-estimate--q4-2013.html" ]).
Labour Market Statistics
On 22 January 2014 the Office for National Statistics released the latest Labour Market statistics.
Headline figures are:
co The employment rate for those aged from 16 to 64 for September to November 2013 was
72.1 per cent, up 0.5 percentage points from June to August 2013.
co There were 30.15 million people in employment aged 16 and over, up 280,000 from June to
August 2013.
co The unemployment rate for September to November 2013 was 7.1 per cent of the
economically active population, down 0.5 percentage points from June to August 2013.
co There were 2.32 million unemployed people, down 167,000 from June to August 2013.
co The inactivity rate for those aged from 16 to 64 for September to November 2013 was 22.2
per cent, down 0.1 percentage points from June to August 2013.
co There were 8.93 million economically inactive people aged from 16 to 64, down 22,000 from
June to August 2013.
o Between October to December 2012 and October to December 2013 total pay and regular
pay rose by 0.9 per cent (ONS, Labour Market Statistics, January 2014, 22 January 2014, [
HYPERLINK "http://www.ons.gov.uk/ons/rel/Ims/labour-market-statistics/january-
2014/index.htm!" J).
Inflation
On 14 January 2014 the Office for National Statistics released the latest inflation figures. Headline
figures were:
o The Consumer Prices Index (CPI) grew by 2.0 per cent in the year to December 2013, down
from 2.1 per cent in November.
o The largest contributions to the fall in the rate came from prices for food & non-alcoholic
beverages and recreational goods & services. These were partially offset by an upward
contribution from motor fuels.
© The overall price increase for gas and electricity in December 2013 was slightly larger than
the rises a year earlier resulting in a small upward contribution to inflation (ONS, Consumer
Price Inflation, December 2013, 14 January 2014, [ HYPERLINK
“http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/december-2013/index.htm" }).
Other current issues
50 pence tax rate. On 25 January 2014 Shadow Chancellor Ed Balls MP announced that a future
Labour Government would re-introduce the 50p top rate of income tax for those earning over
£150,000 (BBC News Online, 25 January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/uk-
25894312" }).
EU immigration. On 27 January 2014, the Prime Minister said that the numbers of Romanians
and Bulgarians arriving in the UK since the last work curbs were lifted are at a ‘reasonable level’
(BBC News Online, 27 January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/uk-politics-
25909991" }).
Red tape. On 27 January 2014 the Prime Minister announced that thousands of rules affecting
business are to be scrapped or amended. Mr Cameron told a Federation of Small Businesses
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(FSB) conference that more than 3,000 rules will be dropped or changed, saving more than £850
million a year, he told the FSB. They include 640 pages of cattle movement guidance, 286 pages
of hedgerow regulations and 380 pages of waste management rules (BBC News Online, 27
January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/business-25903681" ]).
2015 general election
Aside from the broad economy, welfare and taxation the 2015 campaign is likely to feature the
following issues:
Business rates. The British Retail Consortium is currently campaigning on business rates as
they believe that ‘There is a growing consensus that the business rates system is no longer fit for
purpose. The rates force retailers to pay disproportionately more tax than other sectors, are less
competitive than property taxes in other countries, distort occupancy costs and lead to vacant
shops’. In the 2013 Autumn Statement the Chancellor announced that business rates would be
capped at 2 per cent this year rather than being pegged to inflation (BRC website, [ HYPERLINK
“http:/www.bre.org.uk/brc_policy_content.asp?iCat=47 &iSubCat=696&spolicy=Property&sSubPol
icy=Business+Rates" ]; BBC News Online, 4 December 2013, [ HYPERLINK
“http://www.bbc.co.uk/news/business-2521 1196" ]).
The Autumn Statement did see some announcements on business rates:
o Business rates: discount — The government will introduce a business rates discount of
£1,000 for retail and food and drink premises with a rateable value below £50,000 for 2 years
up to the state aid limits from 1 April 2014.
o Business rates: reoccupation relief - The government will introduce a 50 per cent business
rates relief for 18 months up to the state aid limits for businesses that move into retail
premises that have been empty for a year or more. Businesses which move into empty
premises between 1 April 2014 and 31 March 2016 will be eligible for the relief.
o Small Business Rate Relief (SBRR) — The government will extend the doubling of SBRR for
a further year from 1 April 2014.
o Small Business Rate Relief on second properties — The government will relax the SBRR
rules to allow businesses in receipt of SBRR taking on an additional property to retain SBRR.
on the first property for 1 year, with effect from 1 April 2014.
o Business rates: payment — The government will allow businesses to pay business rates
over 12 months rather than 10 months, with effect from 1 April 2014 (HMT, Autumn Statement
2013, 5 December 2013, p. 93, [ HYPERLINK
"https:/Awww.gov.uk/government/uploads/system/uploads/attachment_data/file/263575/Autum
n_Statement_2013.pdf" ]).
The Association of Convenience Stores has welcomed the announcement that 300,000 retail
businesses will be eligible for the rates discount of £1,000. They said ‘This is a practical and
effective measure to support thousands of businesses in high streets and communities throughout
the country. The business rates discount will help shops to stay open and encourage investment
and job creation. We welcome the fact that the discount will apply equally to petro! forecourts and
post offices below the threshold’ (Association of Convenience Stores Press Release, 29 January
2014, [ HYPERLINK "http:/Awww.acs.org.uk/en/Press_Office/details/index.cfm/obj_id/125E8AF7-
6941-4FD5-BF5BBO2FAB446D4A" J).
There is a current issue where we understand that the Valuation Office Agency (VOA) is
proposing that external ATMs at non-bank premises should become separately rateable. This has
the effect of making ATMs less financially attractive for organisations like Sainsbury's and Post
Office to have on their premises. There is also a potential issue of backdating that may be costly.
Jf this is raised we should emphasise that we are totally opposed and would legally challenge —
we see it harming subpostmasters.
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(Note: There may be a circumstance whereby VOA could carve out Post Office branches as a
special case exemption from the new policy. We shouldn't however divulge this as any such
exemption could come under challenge from other retailers such as Sainsbury's. As a result, we
advise that you shouldn't get into this issue — and if it arises simply state that at the high level we
would be opposed to any implementation.)
Future levels of government spending. On 25 January 2014 Shadow Chancellor Ed Balls MP
announced that a future Labour government would balance the UK's books and deliver a budget
surplus in the next Parliament. Chancellor George Osborne MP says the Conservative Party want
an absolute budget surplus by 2020. The last time the government ran an absolute budget
surplus - which means generating more in revenues, including tax yields, than the entire
expenditure - was in 2001. Labour's ambition to deliver a budget surplus does not include
borrowing additional money for long-term investments, such as a high speed rail link (BBC News
Online, 25 January 2014, [ HYPERLINK “http://www.bbc.co.uk/news/uk-politics-25885606" ]).
Other issues
Scottish independence
Mark Carney’s visit to Scotland. The Governor of the Bank of England, Mark Carney, visited
Scotland on 29 January 2014. As part of his speech, he said an independent Scotland would
need to give up some power to make a currency union with the rest of the UK work. Mark Carney
said such a move, proposed by the Scottish government, ‘requires some ceding of national
sovereignty’ (BBC News Online, 29 January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/uk-
scotland-scotland-politics-25930075" ]).
New poll suggests a yes vote is possible. A New poll suggests that support for Scottish
independence has significantly increased. The survey shows that 37 per cent of people will vote
yes in the referendum, while 44 per cent will vote no. A further 19 per cent of voters said they do
not know how they will vote. The poll was conducted by ICM between January 21 and 24,
surveying over 1,000 people over 16. It shows a significant rise in support for a yes vote,
compared with ICM's last poll on Scottish independence, conducted in September last year before
the publication of the Scottish Government's white paper (Daily Record, 26 January 2013, [
HYPERLINK "http://www.dailyrecord.co.uk/news/politics/independence-referendum-new-poll-
shows-3062947" ]).
Bank branches
Barclays closing 400 branches. On 28 January 2014 it was announced that Barclays Bank
planned to close a quarter of their 1,600 branches in an effort to improve profitability. Other UK
banks, including Lloyds Banking Group and Royal Bank of Scotland, are expected to follow
Barclays’ lead by closing branches and encouraging more customers to use new smartphone
applications. It is expected that the cuts could prove controversial with politicians and consumer
groups, which are concerned about the exodus of banks from the high street (Financial Times, 28
January 2014, [ HYPERLINK — "http://Awww.ft.com/cms/s/0/b51cb58e-8845-1 1e3-85a2-
00144feab7de.htmi" \I "axzz2sFiVHwkv" ]).
Europe
PM pledges to bring back failed EU bill. The private members bill for a referendum on the UK's
membership of the European Union failed to clear the House of Lords but the Prime Minister,
David Cameron MP, has said that he is committed to holding an in-out referendum in 2017
whether a bill is passed or not. Mr Cameron has also said that he is prepared to use the
Parliament Act - a little-used piece of legislation that asserts the primacy of the Commons - to
force it on to the statute books (BBC News Online, 31 January 2014, [ HYPERLINK
“http://www.bbc.co.uk/news/uk-politics-25977258" ]).
Coalition tensions
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Appointees to government bodies. There is a coalition row concerning the Education
Secretary's decision not to reappoint Baroness Morgan as the Chairman of Ofsted once her term
expires. Baroness Morgan believes that this is because of her links with the previous Labour
government where she was Tony Blair's political secretary from 1997 to 2001 when she was
made a life peer. The Liberal Democrats are reported to be unhappy with this decision with
Education Minister David Laws MP said to be ‘furious’ with Mr Gove (BBC News Online, 2
February 2014, [ HYPERLINK "http://www.bbc.co.uk/news/uk-politics-26005917" ]).
Top rate of tax. The Chief Secretary to the Treasury, Danny Alexander MP, has said any cuts to
the top rate of income tax before next year's general election will only happen ‘over my dead
body’. Mr Alexander also said the 45p rate was the ‘right place to be’ and suggested he would
veto any Conservative proposal to cut it to 40p (BBC News Online, 5 February 2014, [
HYPERLINK “http://www.bbc.co.uk/news/uk-politics-26042265" }).
National Minimum Wage
Chancellor calls for rise. Chancellor George Osborne MP has said he wants to see an above-
inflation increase in the minimum wage. He told the BBC the ‘economy can now afford’ to raise
the rate, currently set at £6.31 an hour for people over the age of 21. The call comes after Labour
claims that the economic upturn has not translated into improved living standards (BBC News
Online, 16 January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/uk-politics-25766558" ]).
BIS warn of managing expectations. On 3 February 2014 it was reported that the Department
of Business, Innovation and Skills believed that the Chancellor was wrong to raise hopes that the
national minimum wage could be restored to its pre-recession value of £7 per hour before the
election. It was reported that there was the belief that there was ‘no way’ that the Low Pay
Commission would sanction such a rise (Financial Times, 2 February 2014, [ HYPERLINK
“http://www.ft.com/cms/s/0/ebd8aba8-8c1b-1 1e3-bcf2-00144feab7de.htm" \I "axzz2sFiVHwkv" ]).
Weather
Wettest January since records began. This year has seen the wettest January in many parts of
the country for more than a century, figures show. The Met Office says some parts of England
had already seen twice the average rainfall for January by midnight on Tuesday, and more rain is
forecast. In Somerset, the military remains on standby to help flooded areas (BBC News Online,
30 January 2014, [ HYPERLINK "http://www.bbc.co.uk/news/25966889" ]).
Increased funding for flood defences. On 5 February 2014 the Prime Minister announced a
further £100 million of funding for flood defences and on 6 February 2014 an extra £30 million
was allocated for flood repairs and maintenance (BBC News Online, 6 February 2014, [
HYPERLINK “http://www.bbc.co.uk/news/uk-26061795" ]).
Females in politics
PM criticised for lack of women in the Conservative Party. At Prime Minister's Questions on 5
February 2014, Mr Cameron faced questions from Ed Miliband MP female equality ini the
Conservative Party (the frontbench only had men seated on this occasion). This had been
prompted by the de-selection of Anne Mcintosh MP by her local party in Thirsk and Malton. In
response to questioning Mr Cameron said:
‘On the important issue of getting more women into public life—finterruption.] Yes, this is
fantastically important for our country, because we will not represent or govern our country
properly unless we have more women at every level in our public life and in our politics. I am
proud of the fact that while I have been leader of the party the number of women
Conservative MPs has gone from 17 to 48, but we need to do much more. I want this to go
further. We have also seen more women in work than ever before, a tax cut for 11 million
women, we have stopped pensions discriminating against women and we are putting women
at the front of our international aid programmes. Those are the actions we are taking. There is
more to do, but we have a good record of helping women in our economy’ (Hansard, 5
February 2014, col. 264, [ HYPERLINK
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“http://www. publications. parliament.uk/pa/cm201314/cmhansrd/cm140205/debtext/140205-
0001.htm" \I "14020564000005" J).
Crossrail announcement
e Trains to be made in the UK. Bombardier has won a £1 billion contract to provide trains for the
London Crossrail project, the Government has announced. The company will provide 65 trains for
the Crossrail service, which is set to open in 2018. The trains will be manufactured and
assembled at Bombardier's plant in Derby. The Department for Transport said Bombardier's
contract would support 760 manufacturing jobs and 80 apprenticeships (BBC News Online, 6
February 2014, [ HYPERLINK "“http://www.bbc.co.uk/news/business-26063121" ]).
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Questions and Answers
On the Strategy
Q: Do you agree that if the Government had delivered on the front office for Government then
the £640 million of new funding would not be needed?
The £640 million of additional funding that the Government announced in November 2013 was not in
place of Government Services work but to extend the benefits of the Network Transformation
Programme to the whole of the network while protecting Community branches. More Government
Services work is not a long term, viable way to ensure a sustainable future for the Post Office.
Q: The Post Office is targeting some branches and persuading the subpostmaster to retire so
that the branch can move into a local shop and downgrade the service. How does this fit with
being in the heart of communities?
We need to make sure we create a sustainable Post Office for the future, by transforming the network
to better suit customer needs. This means making difficult decisions to ensure we can maintain our
presence in communities and on high streets. Where the current branch does not have a private retail
business that is suitable for the Local model, we will aim to identify a suitable alternative operator and
premises. If this is possible, we will provide a package to the existing subpostmaster for them to
leave the business, subject to a consultation on any new location. Under this strategy, no community
which currently has a Post Office branch should be left without one as we transform our business
However we will only relocate branches to suitable retailers and premises that can offer the right
levels of access, service and standards that our customers expect. Any move will also only take place
following local public consultation.
We are committed to turning around the network and ensuring these changes take place as soon as
possible to ensure our branches meet the changing needs of our customers and market demands.
Q: You say that you are securing the network, but branches will close — why is this?
The changes to the Network Transformation programme do not amount to a closure programme. Our
agenda is based on growth and one which will help make the network more sustainable in the future.
Our approach is to maintain the network at around its current size. Existing subpostmasters will only
be able to leave the network as part of the Network Transformation Programme if we can find a
suitable alternative operator and premises. Our proposals aim to ensure the long term sustainability
of the network.
Q: Subpostmasters are telling me that Post Office does not have an attractive model for
current or future operators.
The overwhelming feedback from operators and customers on the new branches has been positive.
We have around 1,500 branches already operating the Local or Main model and we have been
closely monitoring performance and regularly speaking with the operators. Average waiting times in
the new models are low: 2 minute 18 seconds in Main branches and 1 minute 41 seconds in Local
branches.
Where a branch converts to a Local branch, they are able to offer products and services that account
for well over 95 per cent of the transactions of any other Post Office branch.
For subpostmasters the local model can offer more retail space. This, combined with the Post Office
driving footfall over extended hours, has led to increases in retail sales of up around 10 per cent in the
Local and Main models.
Customers have been delighted by the extended opening hours — with 19 per cent using local
branches outside of normal Post Office opening hours. Overall, it's a really positive picture, with the
latest research revealing 97 per cent of customers are satisfied with their experience at new models.
Q: Do you think that The Post Office could be privatised in the future?
The position of the Post Office is established as part of the Postal Services Act 2011 which was in
turn based upon the Hooper Review. The Act clearly states that the business will remain in public
ownership due to our social obligations and as such could not be privatised as the law stands.
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Q: The Government promised over £400 million of Government work in 2010 but it is only
worth £130 million — do you agree that the Government has let you down?
The reality is that we have won a vast majority of the Government contracts that we have bid for in the
past four years. However, margins on these contracts are being squeezed by Government aims to
achieve best value for the taxpayer. Our new strategy addresses this changing world and you will see
our Financial Services and Telecoms business take on greater prominence as we move forward to
2020.
Q: After franchising Crown branches certain services will no longer be easily available to local
people leading to an inferior service and the loss of one-to-one help from specially trained and
committed Post Office staff.
It's in our interests (and those of a potential retail operator) to make sure the new Main (former
Crown) branch offers access to the same wide range of Post Office products coupled with good levels
of customer service. We will only work with retailers who can demonstrate their commitment and
capability to deliver services to those same high standards. Post Office branches operated by retail
operators are required to operate and are measured against the same standards expected of our
Crown branches.
We undertake regular mystery shopper research at branches across the network. We have every
confidence that our customers will receive at least as good if not better service in the new branch. An
additional customer benefit is that we expect to see many of these new branches offering extended
opening hours on Saturday — many of our existing Crown branches close at lunchtime on Saturday
and some do not open at all
Q: It is unfair that the Crown network is expected to breakeven by 2015 yet other parts of the
network are still able to benefit from a subsidy from Government.
Whilst there is likely to be some on-going funding for Post Office branches beyond 2015, this will be
for small rural communities where the Post Office branch can be the economic lifeblood of that
community. But not for town and city centre branches where many of the services we offer are
increasingly available elsewhere — through other retailers or online.
Particularly when there is so much pressure on public spending — in welfare, in education, the NHS
etc. - we simply can't be reliant on the goodwill of future governments to support Crown branches.
Our transformation plans are therefore based on creating a sustainable Crown part of the network that
stands on its own two feet, without the need for public funding. It's only through achieving this that we
can safeguard its future.
Q: In the long term, the possibility of a state-backed bank at the Post Office should be
explored.
In its Policy Statement in November 2010, the Government outlined its funding commitments and
policy towards the Post Office. They looked at the case for developing new sources of revenue for the
Post Office, including the creation of a Post Bank - it concluded that now would not be the right time to
do so, suggesting that setting up and capitalising a new bank would be time-consuming and
expensive.
We announced an agreement with HSBC, enabling all 9 million HSBC and First Direct personal
account customers to access their accounts at Post Office branches from Spring 2013.
This agreement means that 95 per cent of all UK debit cardholders have access to their money at
Post Office counters. We would like all banks to offer their customers access via the Post Office.
We already offer a wide range of financial services through our joint venture with the Bank of Ireland
UK - we continue to develop that relationship and invest in our branch network. For example we offer
extremely competitive mortgage rates, have recently announced our intention to join the
Government's Help to Buy scheme and are trialling our current account in 110 branches across the
east of England and the midlands.
On Scotland
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Q: Will an independent Scotland have Post Office branches?
We are structured on a UK wide basis with 1,408 of branches in Scotland and those branches are
part of our modernisation strategy just like anywhere else in the UK
Clearly the Scottish independence referendum is a matter for the Scottish people. Depending on the
result there would need to be wide-ranging discussions to agree on the process to be followed in
implementing any changes with all of the necessary legislation that would need to be undertaken to
enable this.
At this stage Post Office is not in a position to speculate on what process any possible introduction of
independence would follow or the future requirements and frameworks for the provision of Post Office
services in an independent Scotland.
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Annex A - Post Office Welsh Language Consultation
The Welsh Language
Post Office Ltd is very proud of its long standing commitment to the Welsh language. As a business
with an important role in everyday life, we want to offer and facilitate language choice so we can meet
the bilingual needs of our customers across Wales. In meeting that responsibility we adopt the
principle that in the conduct of public business in Wales we will treat the English and Welsh
languages on a basis of equality.
We have operated a formal Welsh Language Scheme since 1997 as part of the Royal Mail Group
business. Now an independent business, Post Office Ltd has produced, in conjunction with the Welsh
Language Commissioner's Office, a new standalone Welsh Language Scheme.
We are now entering a period of public consultation so that customers, members of the public and
other interested parties have the opportunity to provide us with feedback on our draft Welsh
Language Scheme. We welcome feedback by email contact details;
Please send comments by email to: [ HYPERLINK
The postal address is : Post Office Ltd, External Relations, 3rd Floor, Cardiff Mail Centre, 220
Penarth Road, Cardiff CF11 8TA
The consultation period closes on St David's Day, Saturday 1 March 2014.
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Annex B - Bill Esterson MP — recent questions
Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills (1) what assessment
he has made of the effects on local communities of post office branch closures; [173884]
(2) what steps he has taken to reduce the number of closures of post office branches. [173885]
Jo Swinson: This Government has made a commitment that there will be no Post Office closure
programme, planned or otherwise, and is providing £1.34 billion to 2015 to modernise and create a
sustainable Post Office network of at least 11,500 branches which is also compliant with the
Government-set access criteria. The Post Office network has experienced a high level of stability
since 2010, halting over two decades of closures and decline. The size of the network is at its most
stable for over 20 years (Hansard, 5 November 2013, col. 144WA, [ HYPERLINK
“http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm131 105/text/131105w0002.htm" \I
"13110584001 406" }).
Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills how many post office
branches were open at the end of (a) 2009-10, (b) 2010-11, (c) 2011-12 and (d) 2012-13. [175579]
Jo Swinson: This Government has made a commitment that there will be no Post Office closure
programme, planned or otherwise, and is providing £1.34 billion to 2015 to modernise and create a
sustainable Post Office network of at least 11,500 branches which is also compliant with the
Government-set access criteria. The Post Office network has experienced a high level of stability
since 2010, halting over two decades of closures and decline. The size of the network is at its most
stable for over 20 years as demonstrated by the annual end March figures in the following table:
14,219
2j17,818 I
2013)I11,780
(Hansard, 18 November 2013, col. 665WA, [ HYPERLINK
“http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm131118/text/131118w0001.htm" \I
"1311194002848" }).
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Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills how many new post
office branches opened in each year from 2009-10 to 2012-13. [176395]
Jo Swinson: The information requested is an operational matter for Post Office Ltd. I have therefore
asked Paula Vennells, chief executive officer of Post Office Ltd, to reply to the hon. Member directly,
and a copy will be placed in the Libraries of the House. However, I would note that the Government is
providing £1.34 billion over the course of this Parliament to ensure a post office network of at least
11,500 branches, compliant with the Government-set access criteria, is maintained, and that the
network, as a whole, is at its most stable for two decades.
Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills how many post office
branches closed in each year since 2009-10. [176396]
Jo Swinson: I refer the hon. Member to the answer given to question 175553 that I am answering
today. The Government is providing £1.34 billion over the course of this Parliament to ensure that a
post office network of at least 11,500 branches that complies with the Government-set access criteria
is maintained. The network, as a whole, is at its most stable for two decades.
Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills how many post office
branches were open in (a) 2011-11, (b) 2011-12 and (c) 2012-13. [176397]
Jo Swinson: The Government is providing £1.34 billion over the course of this Parliament to ensure
that a post office network of at least 11,500 branches that complies with the Government-set access
criteria is maintained. I refer the hon. Member to the answer given on 18 November 2013, Official
Report, column 665W. That shows the network, as a whole, is at its most stable for two decades
(Hansard, 21 November 2013, cols 968-9WA, [ HYPERLINK
“http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm131 121/text/131121w0001.htm" \I
"131121107000306" }).
Bill Esterson: To ask the Secretary of State for Business, Innovation and Skills how many post office
branches closed in (a) 2009-10, (b) 2010-11, (c) 2011-12 and (d) 2012-13. [175553]
Jo Swinson: At the end of March 2013 there were 11,780 post offices as part of the nationwide
network of branches.
The net closure figures shown in the following table for the four years 2009-10, 2010-11, 2011-12 and
2012-13 reflect the position at the end of each financial year and predominantly reflect branches
which have closed on a temporary basis for a variety of reasons. Where a post office closes on a
temporary basis for operational reasons beyond its control, Post Office Ltd makes extensive efforts to
identify a suitable applicant or alternative ways of re-establishing service.
[I _I\Net closuresI
a7
Comparative figures for the previous four years which include permanent closures under the
Government-funded Network Change programme in 2007-08 and 2008-09 are:
[net closuresI
233 I
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(Hansard, 21 November 2013, col. 969WA, [ HYPERLINK
“http://www.publications.parliament.uk/pa/cm201314/cmhansrd/cm131 121/text/131121w0001.htm" \I
"131121107000306" ]).
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Annex C — Correspondence with Andrew George MP concerning financial
support for subpostmasters.
[EMBED AcroExch.Document.7 ]
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Post Office Li
1st Floor, Bunhill Ro’
148 Old
C.
Andrew George MP
Memb! f£ Parl Tel:
Your reference: 13/7.8/.
our
eference: P
29 January 2014
Dear Mr George
Re: Assistance With Relocation of Post Office®
Thank you for your recent letter to Paula Vennells, Chief Executive,
Post Office Limited. Paula has asked me to look into the position
regarding assistance with costs for offices under our Network
Transformation Programme and reply.
We recently contacted your office to see if we could identify the
branch in question in order to provide a full response, but we
understand that the subpostmaster was reluctant for their details to
be shared. That is a shame as we really need to understand their
specific circumstances in order to advise on investment
opportunities but I have set out some general information here in
terms of the current position.
We are at present undergoing our most extensive investment and
modernisation programme in the history of the Post Office and we are
committed to a strategy which will grow and modernise our network by
introducing modern retail environments that better meet the needs of
our customers with, in many cases, longer opening hours.
Our aim is to develop an agency branch network made up of three
branch types:
* Community Post Office branches provide a value focal point for
local life, serving at the heart of communities that have no
other suitable retailer.
* Post Office Local branches are integrated into a vibrant and
sustainable retail business so they can be offered over the
same opening hours. With Post Office and retail businesses
complementing each other, a local branch creates a lively
centre point for high streets, villages and shopping parades.
* Post Office Main branches serving larger numbers of customers,
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sales including financial services, customers will be offered
the assistance they need in a modern environment.
Each branch type has different investment opportunities, for
example, for Community branches we have in place a new £20 million
investment scheme; branches converting to a Post Office Local can
access up to £10,000 for investment and branches that change onto
the Mains format can access up to £45,000 for investment. The
specific investment available will depend on the individual
circumstances of the branch concerned.
We have recently written to all subpostmasters to provide them with
an idea of which category we believe they fall into and to ask them
to share some information with us so that we can work with them on
developing the future of their branch and to discuss investment with
them.
I would therefore encourage your constituent to engage with us
directly through that process so that we can address his individual
needs, the details on how to do this is in the letter that he would
have received. If he does have any questions or concerns he can
raise these by contacting our Network Transformation helpline on
I hope this information is helpful. If you would like to have a
full briefing on our business strategy and our network programmes,
our Senior Stakeholder Manager for your area, Laura Tarling, w
be happy to discuss this with you. Laura can be contacted onf
or email [ HYPERLINK "mailto:laura.tarling!
T.
Yours sincerely
Donna Gilhooly
Stakeholder Co:
donna.gilhooly
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Annex D - Correspondence with Andrew George MP regarding St Keverne
Post Office
[EMBED AcroExch.Document.7 ]
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_MP Post Office L.
148 old
H LONDON
H ECLV_9HO
J Tel:
Your reference: 13/7.8/ag/ume
reference:PV 1696
23 August 2013
Dear Mr George
Re Susan Knight - St Keverne Post Ofssce
Thank you for your letter of 6 August sent to Paula Vennells, Chief
Executive Post Office Ltd. Your letter has been forwarded to me for
reply.
I fully understand that you are concerned for your constituent,
Susan Knight, and want to make sure that she is treated fairly;
however we are not able to give you specific details of this case
without the consent of your constituent.
However, in respect of the suggestion that the unexplained losses
may have been caused by the Horizon accounting system you will be
aware that Post Office has been undertaking an independent review
into the Horizon system and associated issues.
Post Office is determined to ensure that Horizon and any associated
processes are fair, effective and reliable, and that subpostmasters
can have confidence in the system.
In some instances, however, subpostmasters allege that Post Office
and Horizon have not met these standards. To address these
concerns, Post Office appointed independent forensic accountants,
Second Sight, to investigate this situation.
In collaboration with the Justice for subpostmasters Alliance (JFSA)
and a group of MPs led by the Rt Hon James Arbuthnot MP, Post Office
established an Inquiry into Horizon. Second Sight was appointed to
lead this Inquiry and has been working with a number of former
subpostmasters for over 12 months. A copy of Second Sight's interim
report is available at [ HYPERLINK
“http: //www.postoffice.co.uk/post-office-statement-horizon" ].
Post Office now wishes to offer a Scheme so that individual former
subpostmasters have an opportunity to raise their concerns directly
with Post Office. In partnership with former subpostmasters, the
JFSA, Second Sight and interested MPs, all sides can then work
towards resolving those concerns.
The Scheme is to be launched next week and Mrs Knight may wish to
use this Scheme. The application form and Scheme details will be
available at [ HYPERLINK "http://www.jfsa.org.uk" ].
Yours sincerely
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Angela Van-Den-Bogerd
Head of Partnerships
angela.van-den-boger
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