The European Commission (Commission) has authorised the UK to provide Post Office Limited with £634m of public funding from 1 April 2008 to 31 March 2011. Part of this funding is to be used to cover operating costs in areas of the post office network, which generally makes a loss. The Commission also approved an extension to loan facilities already provided to the Post Office. This loan enables them to provide other public services on behalf of the UK government, including cash services at local postal outlets to more vulnerable groups in society. These measures constitute compensation for providing a public service and therefore must comply with the Community framework for State aid in the form of public service compensation.
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Post Office receives approval for £634m of public funding
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