POL Under Pressure

The looming demise of the Department of Business Innovation and Skills has put pressure on Post Office Ltd to spend spend spend.   POL asked for and received authorisation for £640 of additional funding/subsidy to cover the next three years.

Just to confuse us all, £280m of that is for the continuation of NT and £360m is normal business as usual subsidy.  This is split over three years but POL have already received £280m for this year.  I can see no details of the annual split so I would assume that £140m, £120m and £100m over the next three years for BAU and probably two annual payments for NT of £140m.

I get the distinct impression that POL have been advised that there is no assurance they will receive next year’s installment of NT funding (£140m) – austerity and all that.  The reason I say this is that the letters currently being sent out to SPMRs seem to point to an allocation of funds by POL to future NT expenditure and not just current.   They are forcing SPMRs to make a final choice now that will result in many of them losing their Core payments which will be compensated for by a scheme payable over 18 months.

So they need to be able to go back to BIS (or the department that will replace it) and say sorry but they have already allocated the funds they were promised by way of legal agreements with the SPMRs.

Less than half the network converted after £585m has been spent and they think they can do the rest on a mere £280m – good luck to them.


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