Manchester City Council Agenda Item 8 Executive 25 June 2008 MANCHESTER CITY COUNCIL REPORT FOR RESOLUTION REPORT TO THE EXECUTIVE DATE 25th JUNE 2008 SUBJECT POST OFFICE NETWORK CHANGE PROGRAMME 2008 REPORT OF THE CHIEF EXECUTIVE PURPOSE OF REPORT The purpose of this report is to brief Members on the proposed post office closures in Manchester and to set out our proposed programme of work in response to the consultation process. Attached to the report is the Area Plan for Greater Manchester and High Peak. RECOMMENDATIONS The Executive is recommended to: 1. Note the contents of the report; 2. Delegate authority to the Chief Executive and Deputy Leader to finalise Manchester City Council’s response to the Post Office Closure Consultation. ANNEX 1. Area Plan for Greater Manchester and High Peak FINANCIAL CONSEQUENCES FOR THE REVENUE BUDGET None FINANCIAL CONSEQUENCES FOR THE CAPTAL BUDGET None CONTACT OFFICERS Howard Bernstein Chief Executive 234 3006 [email protected] Sara Todd Head of Regeneration 234 3267 [email protected] Elaine Weinbren Policy Officer 234 3315 Manchester City Council Agenda Item 8 Executive 25 June 2008 [email protected] BACKGROUND DOCUMENTS Motion to Full Council 26th March 2008 Post Offices Report to Communities and Resources Overview and Scrutiny Committee on 5th February 2008 Post Office Network Change Programme 2008 Information Item to Resources and Governance Scrutiny Committee on 6th September 2007. Report to Executive 14th February 2007 ‘The Last Post Report’ by New Economics Foundation and Department for Trade and Industry (DTI) Consultation regarding the future of the Post Office Network. WARDS AFFECTED: Harpurhey, Crumpsall, Didsbury East, Withington and Gorton South. IMPLICATIONS FOR: Anti-Poverty Equal Environment Employment Opportunities Yes Yes No Yes Manchester City Council Agenda Item 8 Executive 25 June 2008 Introduction 1.1 The purpose of this report is to brief Members on the proposed post office closures in Manchester and to set out our proposed programme of work in response to the consultation process. 2.0 Background 2.1 Alistair Darling, the then Secretary of State launched a consultation on the future of the Post Office Network in December 2006. One of the key proposals in the consultation was that Post Office Limited would close 2,500 branches nationally and this would be spread equally across the country and between rural and urban communities. The Post Office was given guidelines to close an average of 18% in each Area Plan. This was confirmed in the consultation response early in 2007. 2.2 Post Office Limited then requested information from the City Council in February 2008 on relevant local factors that would assist them in drawing up the Local Plan for each area. They asked all authorities to provide information on the following: • Regeneration and development plans in each local authority area; • Proposed new settlements; • Major road schemes likely to have a material impact on accessibility between communities; • Significant public transport changes including enhancements, new provisions and likely withdrawal of key services. 2.3 Manchester City Council submitted a response in February that highlighted our vision for the City and detailed plans as set out in the Strategic Regeneration Frameworks. We highlighted that in the future, Manchester will ensure that the existing district and local centres continue to be the focus for retail development and service provision since these centres are in the most accessible locations and already contain a range of facilities. We consider that post offices should be included as part of this offer. 3.0 Current consultation process 3.1 Post Office Limited published the Area Plan for Greater Manchester and High Peak on 10th June. The plan proposes to close 5 of the 63 post offices in Manchester (which represents a closure rate of 7.9% for the City), which are as follows: • Lower Crumpsall PO, 80a Waterloo Street; • Harpurhey PO, 500-504 Rochdale Road; • Ladybarn PO, 106 Mauldeth Road; • Parrswood PO, 841 Wilmslow Road; • Barlow Road PO, 2 Byrom Parade, 201 Barlow Road Manchester City Council Agenda Item 8 Executive 25 June 2008 3.2 The public consultation runs from 10th June until 21st July. In light of the above closures, Manchester City Council will now submit further information on these specific areas and post offices in a further attempt to prevent their closure. 3.3 The process for Members involvement is detailed below: • Members from the relevant wards have been contacted and asked for comments on the previous submission to Post Office Limited and have been asked to provide any additional information by 30th June, which can support the Council’s response Post Office Limited’s consultation. • Post Office Limited have stated that the types of information that will be likely to change their decision are evidence based submissions and facts and figures such as the following: i) High percentage of particular population, eg elderly, BME community that will be adversely affected by the closure ii) Proximity of care homes, specialist schools or institution that would be adversely affected by the closure iii) If the proposed receiving post offices were working to capacity and therefore could not cope with the additional customers from the closed branches iv) Specific schemes that are in development or about to go into development that were not included in our original submission • The City Council’s submission will then be placed before the Communities and Neighbourhoods Overview Scrutiny Committee on 15th July for further input from Members. • The City’s Council’s submission will then be sent to Post Office Limited for the deadline of 21st July. 3.4 Members can also make representations to Postwatch, the consumer watchdog for Post Offices, which is scrutinising the consultation and closure process. 3.5 Manchester City Council is leading and co-ordinating the AGMA response to the proposed post office closures throughout Greater Manchester. The City Council will work with the neighbouring authorities on the proposed closures that are outside the authority’s boundaries but will nevertheless have an impact on Manchester residents. 4.0 Conclusions 4.1 Post Offices offer a vital service to our communities and the loss of a post office can be devastating to a local community. We consider that it is vital to Manchester City Council Agenda Item 8 Executive 25 June 2008 provide as much information as possible and to work constructively with Post Office Limited to try and influence decisions about post office closures as part of the Network Change Programme. 4.2 Recommendations are detailed at the front of this report. Post Office Limited Network Change Programme Area Plan Proposal Greater Manchester with High Peak 2 Contents 1. Introduction 2. Proposed Local Area Plan 3. The Role of Postwatch 4. List of Post Office® branches proposed for closure 5. List of Post Office® branches proposed to remain in the Network • Frequently Asked Questions Leaflet • Map of the Local Area Plan • Branch Access Reports - information on proposed closing branches and details of alternative branches in the Area 3 4 1. Introduction The Government has recognised that fewer people are using Post Office® branches, partly because traditional services, including benefit payments and other services are now available in other ways, such as online or directly through banks. It has concluded that the overall size and shape of the network of Post Office® branches (“the Network”) needs to change. In May 2007, following a national public consultation, the Government announced a range of proposed measures to modernise and reshape the Network and put it on a more stable footing for the future. A copy of the Government’s response to the national public consultation (“the Response Document”) can be obtained at www.berr.gov.uk/consultations/page36024.html. Post Office Ltd has now put in place a Network Change Programme (“the Programme”) to implement the measures proposed by the Government. The Programme will involve the compulsory compensated closure of up to 2,500 Post Office® branches (out of a current Network of 14,000 branches), with the introduction of about 500 service points known as “Outreaches” to mitigate the impact of the proposed closures. Compensation will be paid to those subpostmasters whose branches are compulsorily closed under the Programme. To support the necessary changes to the Network and put it on a more stable footing and to support the reshaped Network of the future, the Government has proposed an investment of up to £1.7bn as a funding package. The majority of Post Office® branches - more than 80% - will not change as a result of the Programme. Post Office Ltd is seeking to implement those changes that do take place as efficiently and sensitively as possible. One of the key ways in which Post Office Ltd will make sure that people continue to have the best possible access to Post Office® services is by applying the minimum access criteria prescribed by the Government in the Response Document: Nationally: • 99% of the UK population to be within 3 miles and 90% of the population to be within 1 mile of their nearest Post Office® branch. • 99% of the total population in deprived urban1 areas across the UK to be within 1 mile of their nearest Post Office® branch. • 95% of the total urban2 population across the UK to be within 1 mile of their nearest Post Office® branch. • 95% of the total rural3 population across the UK to be within 3 miles of their nearest Post Office® branch. 1 Deprived urban – The most disadvantaged urban parts of the UK based on the Indices of Multiple Deprivation (top 15% Super Output Areas in England, 15% of Data Zones in Scotland and 30% of Super Output Areas in Wales and Northern Ireland).