Business secretary Peter Mandelson will reveal plans for a Post Office bank.

As well as offering parcel delivery services, the Post Office is to provide communities with banking services as well.

Business secretary Peter Mandelson is expected to reveal today (Monday) the Labour government's plans to create a Post Office 'bank' which will offer financial products.

The proposals include setting up accounts for those on low incomes to help them manage their budgets and current accounts accessible from any Post Office.

Lord Mandelson will tell party members today: ""The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities."

The Labour government recently spelled out in its policies for the upcoming general election that expanding the Post Office's range of services is crucial to its long-term future.

As well as providing accounts, the government wants the network to provide more mortgage support, business accounts and a wider range of financial products to help serve the community.

Posted by Rob Elliott

Article Added: 29/03/2010 09:30:19