MPs in the region have welcomed the announcement motorists will be able to tax their cars at post offices for at least seven more years.
The Government said the Driver and Vehicle Licensing Agency (DVLA) was awarding a new contract to the Post Office to provide DVLA services until 2020. The £450 million contract, with the option for a three-year extension, will mean drivers will be able to get their vehicle excise duty car tax discs from post offices, in addition to applying for driving licences at certain branches.
Conservative MP for Torridge and West Devon Geoffrey Cox said: "Local post offices sit at the heart of community life, and this decision will make life easier for everyone who drives in Torridge and West Devon."
Stephen Gilbert, Liberal Democrat MP for St Austell and Newquay, said: "Post offices are a vital part of our communities here in Cornwall and this news helps to put them on a more sustainable footing for the future."
National Federation of SubPostmasters general secretary George Thomson said: "This vital contract must be the first of many awarded by government and local authorities if our cherished national network of post offices are to have a sustainable future."