The announcement last week about the Post Office offering 90% LTV deals is clearly a political move by business secretary Peter Mandelson.
If the Post Office is well loved by the community why did the government close thousands of branches? People are not stupid. Labour has had 13 years to introduce an account accessible to people on low incomes. Mandelson is now frantically announcing new plans to appeal to the voting public.
If he was serious about using the Post Office for financial services he would have done this a long time ago and not waited until the network had shrunk to less than half of what it was at its peak.
By his conduct he is admitting that both he and Labour got it wrong and made a mess of it.
The government could have used Giro Bank to deliver an account accessible to all but it sold it off cheaply to Alliance & Leicester, now part of Santander.
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