A couple have turned down an offer of £300,000 from a developer to buy up a village store and post office and build houses on the site.

Bernard and Mary Knowles refused the offer because they want to see the enterprise run for the community and are backing a plan by villagers to take over the business.

After 33 years, the pensioners are retiring shortly from the business at Bishop Monkton, near Ripon, which sells everything from food to garden equipment.

A survey is being conducted to find out how much support there is for the scheme to run the shop as a community project.

Mr and Mrs Knowles hope the scheme gets off the ground because when they retire, they will be living next door to the shop.

Coun Ian Galloway, who represents the area on Harrogate Borough Council, said the loss of the business would be a blow to the community and he, like many villagers, hopes the move is a success.

"The council is facing a lot of difficulties with small businesses in rural areas," he said.

"It is good that an initiative is being taken to try and retain the business.

"There needs to be a lot of soul-searching with the planning system to help people running small businesses these days."