Fears over future of post office

Concerns Horizon scandal legal bills will scupper lease renewal

Friday, 29th March 2024 — By Charlotte Chambers and Frankie Lister-Fell

Post office in Upper Street IMG_6958

The post office branch in Upper Street

THE future of one of Islington’s oldest post offices hangs in the balance this week after the Post Office confirmed its lease runs out in July.

The Crown post office at 161 Upper Street – which serves 3,000 people a week – could face closure this summer if the Post Office decides to not renew its lease with landlord Gunnercooke LLP. The Tribune has seen a letter from the landlord to the post office, dated January 18, stating it was terminating the tenancy, while adding: “We are not opposed to granting you a new tenancy.”

Since the Horizon scandal broke, the Post Office has been looking to make efficiency savings in order to pay expensive legal bills and with huge compensation payouts in the pipeline.

By January 2024, the Post Office had paid out £153million to victims of the Horizon scandal – sub-postmasters convicted of fraud and theft after faulty software created false shortfalls in their accounts – and is still under investigation over who knew what about problems with the technology and when.

The Communication Workers Union, representing post office staff, said it had “grave concerns” that the Upper Street post office could close.

A source said: “The CWU would be extremely disappointed if the Post Office now go ahead and close the post office at Upper Street and hope they will do the right thing, both honourably and for the good of the community, and renew the lease.

“The CWU have very grave concerns that the Post Office will use a break in the lease to close the office as they did in early March when they closed both Clapham Common and Southall post office.

“There has been a post office in Islington Upper Street for over 100 years, with the current post office being the newest one in the whole of the Crown estate, opening in 2014.”

The number of Crown branches has fallen significantly over recent decades. Last year there were 117 left, compared to 373 branches in 2013.

Emily Thornberry, Labour MP for Islington South, said: “I hope that the Post Office is being straightforward about this and their engagement with the landlord will be in good faith. Residents rightly expect a Crown post office on Upper Street and if necessary will fight to retain it.”

The Tribune spoke to staff in Upper Street yesterday (Thursday) who said they were unaware of any threat to the post office.

Branch manager Aminata Ouattara said: “The Post Office hasn’t told me that it’s going to close. We haven’t heard anything about it so I would say it’s just a rumour. If there’s anything official then I would say.

“If there is an announcement we have to inform our customers 6-12 weeks in advance, which is not the case. The head office would let me know.

“It’s quite a busy branch so why would the Post Office close in a residential area? It’s part of the community.”

Customers who use the shop said they would be disappointed if it closed.

Molly McConville, 88, lived by the King’s Head for 58 years before recently moving to Crouch End.

She told the Tribune she used the branch at least twice a month when she lived in Islington. Ms McConville added: “It would be dreadful if they close. I hope it doesn’t. They used to have a post office in Highbury and then that got closed, so people really need this one.

“I had a good bank in Crouch End and they’ve closed it so I come to Islington to bank. The banks are actually telling us, ‘don’t worry, you will be able to get money from the post office’.”

Ann, who did not want to share her last name and lives in Essex Road, said she relies heavily on the post office. She said: “I use it at least once a month, maybe more, as I pay my rent there. I also use it for stamps and posting letters.

“Just now I used it for a MoneyGram to send money to relatives in South America where I’m from.”
Sanjay Kumar, owner of Hardware DIY tool shop right next to the post office, said the branch is “always busy” and every Saturday morning there is a queue of “about three people” outside before it opens at 9am.

A Post Office spokesperson said: “The lease expires at the end of July 2024 and, as is common practice when a lease nears its end, we will be engaging with the landlord to discuss the possibility of renewing it.”

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