The UK government is considering a significant restructuring of the Post Office by exploring options to hand ownership of the organisation to its sub-postmasters.
The Department for Business and Trade (DBT) has hired Boston Consulting Group (BCG) to evaluate the potential for transforming the Post Office into an employee-owned mutual, similar to the John Lewis Partnership model.
The mutualisation plan is in its early stages, and BCG is expected to deliver a report to Jonathan Reynolds, the business secretary, in the coming months. If implemented, this change would represent a historic shift for the Post Office, a 364-year-old institution and the UK's largest retail network with approximately 11,500 branches.
The idea of mutualising the Post Office is partly a response to its financial challenges, as it currently relies on government subsidies to remain operational.
There is also growing public demand for a review of its ownership model following the Horizon IT scandal, which wrongfully convicted hundreds of sub-postmasters of theft, leading to one of Britain's most significant miscarriages of justice.
The scandal has prompted calls for accountability, with the government facing pressure to consider legal action against former Post Office directors. This shake-up comes at a time of internal disputes within the Post Office's leadership, including the departure of chairman Henry Staunton and ongoing issues regarding compensation for those wrongfully convicted.
Nigel Railton, the newly appointed chairman and former National Lottery operator boss, is tasked with overseeing the restructuring efforts, including the search for a new chief executive following Nick Read's resignation.
Source:
Sky news
