A BUSINESS group has welcomed the announcement that Newquay’s main post office is earmarked to remain open.

Mark Warren, the manager of Newquay BID, states its essential the branch in East Street is retained as so many people and businesses rely on its services.

It follows the Post Office stating it is moving to a fully franchised network as part of its commitment to deliver a ‘New Deal for Postmasters.’

The last 108 directly managed branches, which are operated by the Post Office, will be franchised by the autumn subject to Government funding.

The Post Office confirmed in November that the future of its directly managed branch network would be under review due to a loss of more than £40 million each year.

Mr Warren said: “I believe if this is the only way of keeping post offices open and available on the high street then franchise partners may have to be the option as long as the Government support with funding to deliver the long-term plan.

“My concern would be that the existing team get looked after and continue employment with the new franchise partner and we keep the location in Newquay as its central and easily accessible to our community.

“The post office is much more than just a postal service and many in our community rely on it for accessing funds and paying bills especially now that we have limited banking on the high street.

“Like many businesses on the high street the post office has to adapt to the changes and review its offer to deliver a sustainable model for future growth.”

A decision was taken by the Post Office Board to move to a fully franchised network in order to help fund increases in the remuneration Postmasters receive following consultation with unions and reviewing options with the Postmaster Consultative Council.

Nigel Railton, Post Office Chair, said: “Moving to a fully franchised network is one part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, helping to create a long-term, sustainable future for the Post Office. By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40 million worth of savings that will enable us to uplift postmasters’ remuneration by up to 10 per cent.

“Over the coming months, we will continue to work with our unions to ensure that we treat our staff working in these 108 branches with care and respect through this transition, consulting with them on proposed changes.

“The 108 Post Offices will either stay in the same location where possible or be located close to the existing location, meaning customers will continue to have access to a full suite of products and services.”

The Post Office remains committed to meeting the current requirement to have a minimum of 11,500 branches across the UK and to meet the six access criteria set by Government.

A Post Office spokesperson said: “Post Office will work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure communities in these 108 locations will continue to receive a high quality of service once their directly managed branch is franchised.

“Further details on proposals will be shared with local communities and stakeholders for individual branches in the coming weeks.”