The DVLA’s car tax disc business will stay with the post office network following “very hard slog” from subpostmasters and more than a million postcards to MPs from the general public.

The new seven-year contract ensures that from next March, customers will be able to renew road tax, change car ownership details and names and addresses on driving licences at post offices, and fulfils a government promise to make the network its “front office for business”.

The National Federation of SubPostmasters general secretary George Thomson said the contract is a “framework agreement”, meaning it will be easier for Post Office Ltd to be awarded a host of other future government contracts without having to go to competitive tender.

He said: “The importance of today’s decision cannot be underestimated and is a victory for subpostmasters and their customers who made clear that DVLA services are highly valued and are essential for the future viability of the post office network.”