Vince Cable, Business Secretary, has asked Co-operative UK to put together a proposal for the mutualisation of parts of the Post Office.

The Postal Services Bill had its first reading in Parliament this week. It proposes giving ownership of the government-owned body to a mutual, which would have staff as members.

Cable said: “It seems to me that the Post Office is ideally suited to a John Lewis or Co-operative Group-style structure, where employees, sub-postmasters and communities get a greater say in how the company is run.”

He said that the Co-operative UK had already been asked to put together a proposal for how mutualisation could be done.

"This would be the Big Society in action," Cable said.

However, the Co-operative's head, Ed Mayo, cautioned that building a membership-base and culture for mutual ownership would take time.

About 1,000 post offices are already owned by mutual organisations and local communities, rather than the government.