COUNCILLORS have rejected plans to allow residents in South Ribble to pay their council tax at local post offices.

They have sent officers back to the drawing board as they continue to hunt for an alternative to the borough's mobile payment unit.

The council axed the collection van in April after it was found to be 'uninsurable.' The van had toured South Ribble's far-flung districts on a regular basis collecting taxes from people unable to travel to the Civic Centre in Leyland.

Since it ceased to operate, people who used the van have been paying tax at the Post Office, and incurring a 97p handling fee.

Following complaints, including a 300-plus signature petition from angry Penwortham residents, councillors were told a new system could be introduced, providing tax payers with a card which could be used to pay council tax at the Post Office.

There would be no administration fee to be paid by the customer, with the council footing the bill instead - at a cost of £20,000 per year.

At last week's meeting of the Policy and Resources committee, councillors were given the chance to approve the plans, but instead asked for more information.

A spokesman for South Ribble Borough Council said: "The committee was advised that it could not compensate directly those customers who were having to pay the charge, but it was possible to put a system in place whereby the administration fee could be passed on to the council.

"We haven't got the £20,000 for the new system and the members asked for another report to be prepared before they made a decision."

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