COUNCIL and postal bosses are set to meet amid growing fears that up to one third of East Lancashire's post offices could be axed.

An announcement is due in the next two months, outlining plans to make the Post Office viable in the future.

Part of that plan is expected to involved 3,000 of the nation's 9,000 urban post offices closing or merging because there is currently an over-provision of services in many areas.

Although public consultation will take place and sub postmasters will be asked what they want to do, if one third of urban post offices were to close in East Lancashire the number would be around 35.

Rural post offices have had their futures assured, thanks to a new scheme to assist ones which form a central part of village life.

But fears remain that many urban communities could end up losing their post office under the plans.

Council bosses first expressed concern in April and requested more details on the proposals, and councillors asked officers to find out which post offices would close. Now council chiefs are to meet with Consignia, which owns the Post Office and Royal Mail, to see if the council can do anything to stop closures.

A report to its executive board stated: "The current network is costing more to run than is being earned from it. This position will worsen with the loss of traditional business. For example, next year benefit payments will be paid directly into customers' bank accounts.

"Branches which serve urban communities will be involved in the re-organisation. Consultation is being carried out with subpostmasters whose preferences will inform the future size and shape of the network. As a result, a number will close."

Councillors approved the recommendation that officers now meet with Consignia and report back at a future meeting.

Alan Barrie, executive director at Post Office Ltd said: "In many towns and cities there are simply too many branches for the number of customers.

"Profitability is reducing to a point where it is increasingly difficult for subpostmasters to run viable businesses, let alone invest in the future.

"We are seeing branches close on an ad hoc basis despite our best efforts to find people to take them on when others retire. We will do our best to maintain services in deprived and urban areas."