Cable announces £1.3bn funding package for Post Office

"The package averages out at over £330m a year - more than double the subsidy paid to the Post Office for the past two years. A large proportion of the last Government's funding was spent on closing post offices. Our strategy is completely different - it addresses the underlying economics of the network, while maintaining its size and reach."

Secretary of State for Business, Innovation and Skills Vince Cable today announced a £1.3 billion funding package over the next four years to maintain and modernise the Post Office network.

Dr Cable said the funding package will secure the long term future of the Post Office network and ensure that there will be no closure programme.

He added that whereas much of the previous Government's funding was spent on closing post offices, the Coalition's strategy "addresses the underlying economics of the network, while maintaining its size and reach".

"The Post Office network is a cornerstone of British life. Our £1.3 billion funding package will reverse the years of decline and secure its long term future. It will ensure that there is no new closure programme - but it will also allow the Post Office to invest, improve its offer and win new revenue streams. It will put the network on a stronger and more sustainable footing," Dr Cable said.

"The package averages out at over £330m a year - more than double the subsidy paid to the Post Office for the past two years. A large proportion of the last Government's funding was spent on closing post offices. Our strategy is completely different - it addresses the underlying economics of the network, while maintaining its size and reach."