Ministers are looking at cutting the size of the Post Office network to a "politically acceptable" level, according to the organisation's former chairman, raising the prospect of hundreds of branches across the country.
The issue of branch closures was discussed between then-Post Office chairman Henry Staunton and Sarah Munby, the then-top civil servant in the Department for Business, Energy and Industrial Strategy on January 5 last year.
According to the memo from Staunton, the pair agreed that "we needed to do long-term thinking for a new Government of whichever colour. This would include what is politically acceptable wrt [with reference to] the size of the network".
The pair also discussed on the call the "likelihood of a significant reduction in post offices if more funding was not required".
Secret plans to close branches across the country revealed
PA/Parliament TV
The discussion about what is a "politically acceptable" size of the network will raise concerns that officials will push the next Government to order a fresh round of branch closures.
The branch network of around 11,500 outlets has been maintained since the mid-2000s when the Labour Government pursued a controversial plan which closed 2,500 post offices, taking it down from 14,000.
Any new closure programme would be politically risky not least because 900 sub-postmasters were wrongly prosecuted between 1999 and 2015 for mistakes in the organisation's Horizon computer system.
The Post Office declined to say what a "politically acceptable" level is for the current branch network.
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Former Post Office chairman Henry Staunton
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A spokesman told GB News: "The Government requires the Post Office to have a minimum of 11,500 branches and we are pleased that the network has been stable over the last several years despite the current challenging economic climate.
"There are currently well over 11,600 branches trading at present. Post Offices have an economic impact of £4.7billion - more than the annual economic impact of Heathrow Airport.
"We recognise how important access to our products and services is for our customers and we remain committed to delivering a sustainable network for local communities across the country, as well as for Postmasters and our retail partners."
A spokesman for the Department for Business and Trade, the successor to the Department for Business, Energy and Industrial Strategy, declined to comment.
Between the years 1999 and 2015 the Post Office pursued branch owners across the country for alleged theftPAHowever, a departmental source said the Government allows the Post Office to operate providing it fulfils the access criteria to ensure that services remain within three miles of the public.
He added that the Government has provided the Post Office with over £2.5billion in funding over the past decade, with a further £590million being provided between 2022 and 2025.
The source added: "Despite all the challenges faced by retailers in recent years, the Post Office network is not in decline.
"Indeed, more post offices have opened this year than have closed, and the network is as large today as it has been for five years, with around 11,700 branches open."
The memo emerged this week after Staunton said he had been told to stall payouts to allow the Government to "limp into the election", apparently to help state finances.
But Business secretary Kemi Badenoch said the claims were "completely false" and accused him of spreading "made-up anecdotes".
Staunton, who has been on boards of companies ranging from ITV to WHSmith, was appointed as chair of the Post Office in December 2022, but was dismissed by Badenoch last month.
