The Post Office will offer a new range of business measures such as 90% loans for first-time property buyers, a current account service and a budgeting account for those on low incomes.

The new range of products will be offered at the Post Office's 11,500 branches in the UK. However, the current account will only be introduced once the market has stabilised.

"The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities," said business secretary Lord Mandelson.