The shadow business secretary, Kevin Hollinrake, has expressed his support for potentially giving ownership of the Post Office to its employees. This comes following reports indicating that officials are considering the proposal of ‘mutualisation’ for the institution.
According to Sky News, the Department for Business and Trade has enlisted the services of management consultancy BCG to explore various options for mutualising the Post Office, which boasts over 11,600 branches throughout the UK. If implemented, this move would see the Post Office operating under a model akin to that of the John Lewis Partnership, which oversees the department store and supermarket Waitrose.
While no definitive decision has been made yet, a report on the matter is anticipated to be presented to Business Secretary Jonathan Reynolds in the coming months. In an interview with Laura Kuenssberg on BBC One, Mr Hollinrake mentioned that mutualisation had been considered during his tenure as postal minister, stating, “Mutualisation was always on the table when the Post Office became an independent organisation, so we should look at that.”
He further acknowledged the sentiments among postmasters about the need for more involvement in the decision-making processes of the Post Office, highlighting a desire for less centralized control. Mr Hollinrake noted that discussions regarding the potential mutualisation of the Post Office took place earlier in the year with trade union representatives and others.
The Post Office’s operational practices have faced increased scrutiny in recent years, particularly in the aftermath of the Horizon IT scandal, which led to the prosecution of over 900 subpostmasters due to inaccuracies in the Horizon IT system. Mr Hollinrake praised the appointment of a new chair, Nigel Railton, with a strong retail background, who is reportedly keen on exploring mutualisation as well.
While acknowledging challenges such as compensation payments and software upgrades that lie ahead, Mr Hollinrake emphasised the importance of considering mutualisation as a viable option. The Department for Business and Trade refrained from providing any comments on the matter at this stage.