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Appendix 1 to Report 33/2009 CHALLENGING THE CUTS

DEVON AND POST OFFICE TASK FORCE

FINAL REPORT

JANUARY 2009

INSIDE FRONT COVER

Brian Berman 5 July 1939 to 30 September 2008 (insert photograph)

Towards the end of the work of the and Torbay Post Office Task Force Councillor Brian Berman died suddenly. Brian was a member of the Task Force from the outset, representing the County Council. He was an active and determined member and a passionate advocate of the needs of Devon’s communities. The Task Force deeply appreciates his commitment to the task of fighting Post Office closures and the time and energy he put in. He has been a very sad loss to his colleagues and the community. This Final Report is dedicated to him, in the hope that his contribution will result in a real change in the way rural communities are served.

1.0 EXECUTIVE SUMMARY

This report summarises the work of the Devon and Torbay Post Office Task Force. It explains the processes that the Task Force went through, its actions and achievements and the lessons it learned. The report then presents clear recommendations at the local, regional and national levels.

In presenting this report the Task Force hopes that the lessons it has drawn from the process of the review of the Post Office network in Devon will be heeded and acted on. The process has, in the view of the Task Force, been deeply flawed and the outcomes unsatisfactory to say the least. Unless there is recognition at all levels of government of the value of the Post Office network both nationally and to local communities, the Task Force fears that the network will be further eroded. Our communities have seen a continual withdrawal of services, particularly by national providers, mainly under the mantra of efficiency and rarely with any heed to the realities of life particularly for isolated and deprived communities. The Task Force believes it is time to turn the rhetoric of community engagement into the reality of community provision.

The Task Force therefore recommends that:

At a national level:

1. the Government gives a commitment not to enter into any further closure programmes and to sustain a national network of around 12,000 Post Offices including around 340 in Devon and Torbay;

2. the Government (including all its Departments) develops a vision for the future of the Post Office network to ensure its sustainability and to fully acknowledge its social role within communities;

3. the Government establishes a Postbank at the Post Office bringing the UK into line with most of its EU counterparts, which run successful, profitable post office networks offering a wide range of personal and business accounts in addition to mail, government and other services;

4. the Government “thinks Post Office first” when considering awarding new contracts for government services and makes full use of the national asset it has in the Post Office rather than a continuing downward spiral of cuts and closures;

5. Post Office Limited gives a commitment to provide viable Post Office services within the new communities proposed at Cranbrook in and in the South Hams (and to consider other new communities and growth points in the future).

At a regional level:

6. That Government Office for the South West, South West Regional Development Agency and South West Regional Assembly and other regional bodies assess the impact of their policy and

strategic decisions on the regional Post Office network and take it into account in their planning and funding considerations.

At a local level:

7. the Devon and Torbay Strategic Partnerships work with the National Federation of Subpostmasters and Post Office Limited to consider what work local government and other local agencies could channel through the Post Office network to help ensure its long term future and test its ideas through a number of pilots during 2009;

8. public authorities in Devon jointly encourage a proposal under the Sustainable Communities Act on the future of village shops and Post Offices by July 2009;

9. the Devon and Torbay Strategic Partnerships take on a vigilance role in respect of community based services and as part of that role remit a group to take forward the recommendations in this report. It is suggested that the remit is established by July 2009 and the vigilance role is carried out on an ongoing basis with immediate effect;

10. wherever possible, local government responds positively to community initiatives that strengthen the Post Office network locally.

2.0 CONTEXT

2.1 CHRONOLOGY OF CHANGE AFFECTING THE VIABILITY OF THE POST OFFICE NETWORK

Mid 1980’s Post Office Ltd created as a separate company within the Royal Mail Group.

1990 National Giro Bank sold to the Alliance & Leicester Building Society.

1990s State beneficiaries encouraged to receive payments direct into their bank accounts.

2004 Paper-based order books withdrawn. State benefits payable electronically into bank accounts or a Post Office Card Account.

2007 Post Office Ltd lost the BBC contract for the sale of TV licenses.

British Telecom introduced a surcharge of £4 on accounts not paid by Direct Debit discouraging customers from paying telephone accounts at the Post Office.

Government instructed Post Office Ltd to close 2,500 branches by the end of 2008, reducing the Network to around 12,000 Post Offices (including Outreach services) as part of a Network Change Programme.

2008 Government awarded contract to Post Office Ltd to continue providing the Post Office Card Account. The contact will run initially from 2010 to March 2015, with the possibility of an extension.

2011 European Parliament has voted to introduce full postal competition across the EU by 2011.

Government to review annual subsidy to Post Office Ltd of £150m.

2.2 THE NETWORK CHANGE PROGRAMME IN DEVON

In May 2007, following a national public consultation, the Government announced a range of measures to modernise and reshape the Post Office network and put it on a more stable footing. This included the compensated closure of up to 2,500 branches representing about 17.5% of the total network, and the 1 introduction of around 500 ‘outreach services’ . As can be seen from the chronology of change on the previous page this change programme was conducted against a backdrop of continuing turbulence within the sector.

Branch closures in Devon were considered as part of an Area Plan which was published in May 2008 covering Devon, and Torbay (based on Parliamentary Constituencies). In July, following a six week period of consultation, Post Office Limited announced that:

• it would retain 333 branches and proceed with 37 closures and 32 outreach services. Changes would take effect between August and Autumn 2008;

• they would not proceed with two proposed closures in Torbay and would replace them with two further branches in Devon. Consultation on the replacement branches concluded in September and a decision was taken to proceed with their closure;

• 7 branches were ‘escalated’ making them subject to further review by Postwatch (the watchdog for Postal Services) and Post Office Ltd. A decision was taken to close all branches and replace five with outreach services;

• decisions in respect of the Devon element of the Devon and Mobile Post Office were suspended until the conclusion of the Area Plan Proposal for Cornwall in September 2008. A decision was taken to permanently withdraw the service to 3 communities and replace a further two with a Home Service.

2.3 CHARACTERISTICS OF DEVON

Apart from the urban areas of Torbay, and Plymouth, Devon is a largely rural, sparsely populated county. Devon is the seventh most sparsely populated county in England.

The population is ageing faster than most other areas of the country due to inward migration of people over fifty and outward migration of younger people. Projections indicate that the over 50 age group will grow by one third in the next 15 years. Already 24% of the population are over 50. This is even higher in East Devon, and South Hams. Older people are more likely to depend on facilities, including Post Offices and village shops, in their local communities in order to retain their independence.

Devon County Council projections suggest that the total population of Devon is expected to increase by 138,000 to 878,000 by 2021, with significant new housing development proposed in the Regional Spatial Strategy in order to meet demand. This includes proposals for new communities at Cranbrook in East Devon and Sherford in South Hams as well as major growth points at and . These developments will increase the potential customer base for Post Offices.

3.0 THE TASK FORCE

WHAT?

The Task Force emerged from shared concerns over the implications of the closures on the viability of Devon’s communities. Some District Councils had already established Member groups to scrutinise and respond to the area review. The County Council was concerned that the process could result in some areas being more severely affected than others. All agreed the network in Devon could be irrevocably damaged and

1 Outreach services are where a subpostmaster, as well as running their own Post Office, provides a part-time service to nearby communities. The majority are in rural areas although the approach is now being trialled in urban areas. There are four types of outreach service: mobile – a van with incorporated post office counter which will stop at a specified location in a community at a designated time for a set duration; hosted – a subpostmaster visits a community at a designated time and runs a service from a ‘hosted’ location eg. village hall; partner – local businessperson runs a post office service from their business eg. local shop; home service – a door-to-door service. that there should be an attempt to make a co-ordinated response to the forthcoming Post Office Ltd Network Change Programme for the Devon area. The Task Force never formally adopted terms of reference but came together around a common purpose of providing such a co-ordinated response, to share information and intelligence.

WHO?

The Task Force was fortunate in having a well-informed membership with good geographical coverage of the county and a balance of experienced elected members, senior Council officers and community sector representatives. The Task Force was also fortunate in having Postwatch and sub-postmaster representatives amongst its elected members.

The presence of a Postwatch representative enabled the Task Force to retain its focus on the task and assisted greatly with communication and understanding of the process. The Task Force kept the Postwatch representative supplied with up to date intelligence about the circumstances of local offices which could then be triangulated with his own information and that supplied by Post Office Ltd.

The Task Force welcomed the participation of a representative from (a unitary authority). The presence of a representative from National Park Authority enabled the remotest part of the county to be adequately represented. The presence of an officer from the Community Council of Devon ensured that the community angle was also reflected in the discussions.

District Councils had essential locality intelligence about the implications of potential closures on the ground. The County Council and other partners had access to national networks and took a strategic overview of the process. The County Council took on the lead role, interacted directly with Post Office Ltd throughout and provided access to a range of its resources including strategic intelligence.

Having an elected member who was a sub-postmaster on the Task Force kept the group grounded as well as giving an excellent wider context for the issues surrounding rural post offices. Finally, the Task Force was very well supported by an officer of the County Council who set up and minuted meetings, ensured that the proceedings of the Task Force went smoothly and that actions were carried out. Good communication was maintained at all times as a result.

HOW?

The ethos of the Task Force was participatory, non-partisan and non-political and operated on a confidential basis in order to protect the interests of its members. The Task Force also accepted that it was a task and finish group and that its primary concern was to achieve the co-ordinated response to the network change proposals. The timescale for the work of the Task Force was established early on at a meeting with Post Office Ltd.

As a result of this clarity of purpose, the Task Force was able to focus on the task and remain united in its approach. This was particularly remarkable since a compressed timetable, the cloak of secrecy around the emerging proposals, the excessive level of proposed closures across the county, and a temptation to compete between areas to minimise closure impact, might have divided the Task Force. In addition the work of the Task Force was carried out against a background of the Boundary Committee’s review of Local Government in Devon which was emerging at the same time. It introduced an overlay and the potential for divisiveness across the Task Force which had to be recognised and accommodated throughout.

There was early agreement that a partisan stance on protecting one locality against another would not assist the overall process. It was recognised that the Post Office network existed without regard to any administrative boundaries. This had to be recognised in relation to the eventual closure announcements and how the organisations responded individually.

The sharing of information and collaboration on the base data supplied by Post Office Ltd demonstrated that the review was a flawed process. The Task Force was shocked to discover that Devon’s proportion of closures was significantly higher at 23% than the other area reviews at 18% (plus or minus 2%). Some areas of Devon were even harder hit. The Task Force assembled strong arguments challenging a number of the closure proposals. Formal responses to Post Office Ltd were consequentially consistent, presenting a unity of view at the consultation stage.

Good links were established with many individual subpostmasters early on in the process and good relationships have developed. The work provided subpostmasters with a sense of external ‘official’ support to complement what they were doing in their own communities and their views and experience helped to inform the short term support strategy that was to emerge. District Councils acted as locality facilitators for publicity, staging many public meetings and debates about the programme.

Communications and the involvement of the media were coordinated. The Task Force was very successful in keeping the issue alive throughout the process of the review in print media, parish communications and local TV/radio coverage.

Email communications were widely used to share information and keep each other informed of developments. In a county like Devon convening meetings involving a large number of potential participants is always challenging, especially when for most this was outside the remit of the “day job”.

4.0 SUMMARY OF ACTIONS AND ACHIEVEMENTS

Timeline

July 07 Post Office Limited invited local authorities to submit information relevant in determining the future pattern of the network in Devon.

20 May-30 June 08 Post Office Limited Devon Local Area Plan consultation

22 July 08 Post Office Limited Decision Announcement

2 September Supplementary Consultations Decisions Announced (latest date)

26 August 08 Commencement of Post Office closures in Devon

The paragraphs below summarise the principal actions taken by the group and what was achieved:

Action Information – The Task Force provided information to Post Office Ltd and Postwatch in the pre-consultation phase of the Programme which was relevant in determining the future pattern of provision. The Task Force also provided a joint response to Post Office Ltd’s Devon Local Area Plan proposal. Organisations represented on the Task Force which also wished to provide an individual response to Post Office Limited benefited from information and intelligence shared amongst the membership.

Action Lobbying – The Task Force lobbied the Secretary of State for Business, Enterprise and Regulatory Reform, Devon MPs, National Chair of Postwatch, Post Office’s Programme Director for Network Change and the Local Government Association.

Achievement 1 The Task Force raised awareness of the issues in Devon and created the scenario in which to negotiate with Post Office Ltd.

Action Analysis and negotiation - The Task Force recognised that, whilst it opposed all the closures, it had to analyse each branch, determine the effect of closure on individual communities, and devise a list of those branches they most strongly felt should be saved. Experience elsewhere in the country suggested all but a few would be closed. The Task Force felt that, after a full analysis, ten branches across the county should not close. The Task Force formally rejected these closures in its submission to Post Office Ltd. Post Office Limited received approximately 7,500 representations (by letter, telephone and email) about the Devon Local Area Plan, second only to London, which demonstrates the strength of feeling locally.

Achievement 2 Two branches were saved - Torre and Chelston - both located in Torbay.

Action Strategy – The Task Force was then faced with developing a strategy to help manage the impacts of the Network Change Programme in Devon. Informed by the Task Force, the County Council led negotiations with Post Office Limited and funded the strategy with a budget of £150,000 per annum for three years which focuses on:

• a business advice, community development and grants scheme where a partner outreach service is provided in the sole remaining shop in the village (the grant scheme effectively compensates operators for the loss of salary as a direct result of their change in designation from subpostmaster to operator through which they cease to receive a salary from Post Office Limited);

• a review of public and community transport to assess whether adjustments could be made to make it easier for people who have lost their Post Office to travel to/from the nearest alternative;

• work with Credit Unions to consider ways in which they might support the remaining Post Office network.

Achievement 3 The Task Force was influential in persuading Post Office Ltd to improve its outreach offer (from Mobile to a Partnered Service in the local shop) in 15 communities (see below) and helped to secure an urban outreach trial in one community in Devon. The Task Force also successfully argued that one Post Office which voluntarily closed during the consultation process should be counted as one of Devon’s closures. All of the communities listed below will benefit from the above scheme.

Ashwater Cheriton Fitzpaine Chillaton Kennerleigh Lustleigh Milton Abbot Plymtree Postbridge Widecome in the Moor

Action Sustainability - The Task Force also considered the effect of the decision on Post Office branches by the Government’s award of the Post Office Card Account following formal tender procedures.

The Card Account provides the Post Office, especially rural offices, with both valuable business and the provision of an important community service. Almost exclusively elderly, disabled and deprived residents use the Post Office Card Account. To remove that service from the Post Office would cause hardship to this most vulnerable section of our communities. Post Office Ltd has made it known that, if the contract were awarded elsewhere, then some 3000 Post Office branches might close in addition to the 2,500 closed under the current Network Change Programme.

The Task Force lobbied MPs and Government on the future of the Card Account. It appears that this significant political decision and an apparent shift in Government policy will have a fundamental effect on the future of the remaining Post Office network.

Achievement 4 Card Account awarded to the Post Office. NB. The Task Force does not claim the credit for this achievement.

5.0 LESSONS LEARNED

The implementation of the Network Change Programme was an operational matter for Post Office Limited. The national Programme began in July 2007 and was scheduled to conclude by October 2008. This was a very challenging timetable which meant that consultation was curtailed (and did not meet central Government standards for consultation) and that the detailed information required to implement the access criteria properly was not always taken fully into account. The whole process was rushed and there was a lack of transparency about how decisions were being made. Commercial confidentiality also prevented sensible discussion.

Disappointingly, Devon received a very disproportionate hit at almost 23% compared to the national profile of 18% (plus or minus 2%). This hit also affected a number of parishes or neighbouring areas rather than just the immediate community as people might use a different post office from their closest one for a variety of reasons such as proximity to work. The area plans considered separately also had an impact on people who might use Post Offices just over the county border, invoking a double hit for some.

Insert maps of and Widecome in the Moor below. Caption: Post Offices in rural communities serve a large geographical area which extends far beyond the village boundary.

Widecombe.jpg Princetown.jpg (558 KB) (607 KB)

The Task Force agreed a list of ten Post Offices that it believed should remain within the network and not be closed. It remains an immense disappointment that only two remained open (and a further two were closed to replace them). The explanation given for rejecting the case for the remaining eight was, in the view of the Task Force, wholly inadequate. In addition, the Task Force was dismayed that the appeals/escalation process was not dealt with at the highest level despite the strong feelings of the community and their supporters in councils, Postwatch and community organisations. The process was also closed to external representation.

Lesson 1 Post Office Ltd was a challenging and intransigent body to deal with and despite the consultation period, which was really about checking the facts, they were determined to move forward with their agenda, regardless of community need or feeling and business cases put forward.

Lesson 2 In developing the Devon outreach model that in some ways compensates for our losses, we also learned that Post Office Ltd remained quite clear on their path and if appropriate arrangements could not be made, services could be substantially diminished or withdrawn.

Lesson 3 A lot has been learnt about the vulnerability of the remaining Post Office network for the future.

Lesson 4 The passion and strength of feeling within local communities and how much those communities have valued the support of their Councils also became clear.

Lesson 5 Postwatch’s insight, factual information, advice and progress reports were extremely helpful to the Task Force. We regret its demise and fear that Consumer Voice will not be so focused on or aware of community need in terms of Post Office provision compared to a dedicated watchdog body.

Lesson 6 The Task Force, a mix of Members and officers from local government and representatives from the community sector, working together could bring a whole range of skills to the table and become a much stronger, more unified voice making things happen. The Task Force has developed a model of good practice for issue based partnership working which is recommended as an example of best practice.

Lesson 7 If local communities are to be sustained the interconnectedness of local services needs to be recognised. Post Office services cannot be seen in isolation from other essential services, the loss of any one of which may put other services at risk. Local authorities and Strategic Partnerships will need to keep constant vigilance on behalf of local communities in order to maintain these essential services.

6.0 RECOMMENDATIONS

6.1 The Task Force recommends that:

At a national level:

• the Government gives a commitment not to enter into any further closure programmes and to sustain a national network of around 12,000 Post Offices including around 340 in Devon and Torbay;

• the Government (including all its Departments) develops a vision for the future of the Post Office network to ensure its sustainability and to fully acknowledge its social role within communities;

• the Government establishes a Postbank at the Post Office bringing the UK into line with most of its EU counterparts, which run successful, profitable post office networks offering a wide range of personal and business accounts in addition to mail, government and other services;

• the Government “thinks Post Office first” when considering awarding new contracts for government services and makes full use of the national asset it has in the Post Office rather than a continuing downward spiral of cuts and closures;

• Post Office Limited gives a commitment to provide viable Post Office services within the new communities proposed at Cranbrook in East Devon and Sherford in the South Hams (and to consider other new communities and growth points in the future).

At a regional level:

• That Government Office for the South West, South West Regional Development Agency and South West Regional Assembly and other regional bodies assess the impact of their policy and strategic decisions on the regional Post Office network and take it into account in their planning and funding considerations.

At a local level:

• the Devon and Torbay Strategic Partnerships work with the National Federation of Subpostmasters and Post Office Limited to consider what work local government and other local agencies could channel through the Post Office network to help ensure its long term future and test its ideas through a number of pilots during 2009;

• public authorities in Devon jointly encourage a proposal under the Sustainable Communities Act on the future of village shops and Post Offices by July 2009;

• the Devon and Torbay Strategic Partnerships take on a vigilance role in respect of community based services and as part of that role remit a group to take forward the recommendations in this report. It is suggested that the remit is established by July 2009 and the vigilance role is carried out on an ongoing basis with immediate effect;

• wherever possible, local government responds positively to community initiatives that strengthen the Post Office network locally.

6.2 The recommendations above are designed to challenge authorities at local, regional and national levels. Recipients of this report are invited to provide feedback on how they would wish to respond to the recommendations that are relevant to them.

7.0 APPENDICIES

7.1 APPENDIX 1 Task Force Membership 2007/8

Community Council of Devon David Kinross and Penny Thame

Dartmoor National Park Phil Markham

Devon County Council Councillor Brian Berman, Sue Craythorne, Councillor Gordon Hook and Angela Welch

Devon Renaissance Pete Tansey

Devon Rural Network Jennifer Brogan

East Devon District Council Councillor Ken Potter

Exeter City Council Jill Day and Gill Wheelwright

Mid Devon District Council John Bodley-Scott

North Devon Council Steve Pitcher (Task Force Chair)

South Hams District Council Councillor John Baverstock and Michael Cozens

Teignbridge District Council Gary Powell and Colin Slocombe

Torbay Council Trish Webster

Torridge District Council Councillor Caroline Church and Councillor Chris Leather

West Devon Borough Council Councillor Alison Clish-Green, Nick Payne and Councillor David Weeks

7.2 APPENDIX 2 Background documents available on request:

• Survey of the Local Impact of Potential Post Office Closures in Devon, A Report from the Community Enterprise Unit Ltd for Devon County Council, June 2008 • Joint Response from Devon Local Authorities and Organisations to Post Office Limited’s Devon Area Plan Proposal, June 2008 • Post Office Limited Local Public Consultation Decision Announcement and 4 Supplementary Booklets available at www.postoffice.co.uk

For feedback and further information please contact: Angela Welch, Chief Executive’s Directorate, Devon County Council, County Hall, Exeter, EX2 4QD Tel: 01392 382939 Email: [email protected]

Text boxes to be scattered throughout the final printed version alongside images from local media (which have been selected)

“We are a focal point, a place where people who live close by come on a daily basis – sometimes we know we are the only ones they talk to, we give advice and help in many non-Post Office matters.”

“The Post Office is very much the centre of the village community and is vital to people who live in the village. I do not want to lose it.” (Offwell)

"This issue has united and galvanised communities across and shows the value that residents place on their local Post Office services. Post Offices are a focal point for communities and rural businesses and we must fight hard to reduce the impact of these closures in our area."

“We are very shocked they (Post Office Ltd) chose to ignore the representations of the people and the strong argument we made. The closure will be catastrophic for some of the elderly and disabled residents who rely on the service.” (Abbotskerswell)

“If it (the Post Office) goes we would gradually lose our shop. The shop and the Post Office survive with each other.” (Offwell)

“Not only are Post Offices at the heart of every rural community but they provide an essential public service that we cannot do without.” ()

“Our cohesive community faces disaster if this closure goes ahead. There has been a Post Office and shop here for 60 years and local people will suffer if it shuts.” (Kennerleigh)

“We are very concerned about the countryside. It seems the people involved with it are being deserted.”

“The shop couldn’t survive without the Post Office, so there would be nothing left. It’s a great shame – it’s a vital part of a small community.” (Kennerleigh)

Draft Response Proforma

Name of Organisation:

Lead Contact for Post Office matters:

Contact Tel and Email:

Please summarise below what your organisation will do to contribute to the recommendations in the report (continue on separate sheet if necessary):

Recommendation Actions Timescale

Number

Do you wish to be part of an email network of Post Office lead contacts in Devon to receive information about national, regional and local developments?

Yes No

Please return to:

Angela Welch, Chief Executive’s Directorate, Devon County Council, County Hall, Exeter, EX2 4QD Tel: 01392 382939 Email: [email protected]

Draft Distribution List for the Report

LOCAL

Devon and Torbay Strategic Partnerships

Task Force constituent organisations (see Page 9 of report)

Community Council of Devon (CCD)

Devon Association of Parish Councils (and appropriate Town Council Associations) (via CCD)

Plymouth City Council

Members of Parliament

Members of the European Parliament

The Duchy of Cornwall

REGIONAL

Government Office for the South West

South West Regional Development Agency

South West Regional Assembly

Minister for the South West

NATIONAL

Department for Business, Enterprise and Regulatory Reform

Department for Communities and Local Government

Business and Enterprise Select Committee

Local Government Association

Post Office Limited

Royal Mail

National Federation of Subpostmasters

Consumer Focus

Postcomm

Commission for Rural Communities

Rural Services Network