The Business and Enterprise Select Committee also says that ministers have “underestimated” the postal service’s potential to act as a link between government and citizens.

Committee chairman Peter Luff, says: “We conclude that post offices can flourish again – and must be allowed to do so. Our report shows – in considerable detail – what needs to be done.”

It found that the Government’s response to an investigation aimed at preventing the continued closures of post offices had been “inadequate”.

The report concludes that what the Government needs to do now is to provide the Post Office with practical support, if it is to help it survive.

Luff adds that while the Government’s £150m a year funding is welcome, it is “absurd” that it is paying such an amount to a network which offers “limited services when it could simply pay the network to offer services people actually want”.

Meanwhile, the Post Office’s direct marketing and branding account is currently out to tender.

The current incumbent on DM is Draft FCB, which was appointed to the Post Office roster in 2006.