Robert Smith MP Backs Post Bank

7.00.00pm GMT Thu 25th Mar 2010

Sir Robert Smith MP for West Aberdeenshire has backed growing calls for a Post Bank at the Post Office. Following a wave of post office closures last year and failures in the banking system, the creation of a Post Bank would bring new business to post offices across the UK and provide trusted, state-backed banking in communities everywhere. He raised the issue during the Budget Debate in Parliament.

Robert later said: "The Post Office is one of our most trusted and cherished institutions. It makes sense to introduce a Post Bank to capitalise on this trust at a time when people have been so badly let down by many high street banks.

"I don't want to see any more post office closures in my constituency and neither do my constituents. I believe that a Post Bank would greatly strengthen the Post Office network, keep post offices open and bring valuable new banking services to communities and small businesses. We have a great opportunity to make this a reality by acting now."

A YouGov poll carried out in January found that:

• 78% agree that there is a need for a new model of bank run in the public interest and not solely for profit (only 4% disagree)

• 72% agree that all of the profits from post office banking should stay within the business and be used to sustain the network (only 6% disagree)

• 63% said they would be likely to use a publicly owned Post Bank run in the public interest (only 20% said they were unlikely to do so)

• Only 13% agree with the statement that high street banks currently meet the needs of local businesses and communities

Notes:

• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,097 adults. Fieldwork was undertaken between 26th - 28th January 2010. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

• People in the north west were most likely to use a Post Bank (71%) while people in Yorkshire and the Humber had the lowest confidence in banks currently meeting local needs (6%). People in Wales felt most strongly that a new model of banking is needed (84%) and people in the south west felt most strongly that all profits from banking should stay in the Post Office (81%).

• The Post Bank Coalition is made up of the Communication Workers Union, Countryside Alliance, Federation of Small Businesses, National Pensioners Convention, nef (the new economics foundation), PIRC and Unite the union. The Coalition was formed to campaign for a wholly publicly owned bank in the Post Office to serve needs of business, communities and the financially excluded.

• The BIS consultation, Post Office Banking; A consultation on developing the banking and financial services available at the Post Office, can be viewed at: www.bis.gov.uk/postofficebanking

• Early Day Motion 344 backing Post Bank has been signed by MPs from all political parties.