A MULTI-million pound rescue package for rural post offices is being announced by the Government today.

About £450m is to be spent over the next three years to maintain the loss-making network.

Without the money, up to 80 per cent of Britain's 8,500 country post offices could shut, says the Royal Mail Group.

Backed by thousands of readers, The Northern Echo launched its Last Post Campaign in response to threats to the survival of hundreds of village post offices in the region, at risk because of moves to have benefits paid directly into bank accounts rather than over the counter.

Colin Baker, general secretary of the National Federation of Sub-Postmasters, welcomed the Government announcement.

He said: "This is clearly good news for rural communities which depend heavily on their local post office.

"But £450m is a lot of money and it must not only be used to maintain services, but to give these ailing businesses a viable future."

Trade and Industry Secretary Patricia Hewitt said: "Post offices play a vital role in many rural communities.

"They are much more than simply providers of mail services.

"The money announced today will help to ensure that the village post office remains firmly at the heart of the community."

But Middlesbrough Liberal Democrat councillor Maelor Williams is worried that without help, post offices on the rural fringes of towns could close - eight of them in villages around Middlesbrough - because they are classified as urban.

He said: "The problem is the Government seems to be pressing ahead with automated credit transfer.

"More and more people are getting letters from the Government putting pressure on them to have these payments made to a bank account. The least able in society will have to catch buses to get their money."

Tim Yeo, Conservative Shadow Trade and Industry Secretary, said: "We welcome the Government's proposals, including cash help, as far as they go.

"However they still fall short of a coherent and comprehensive strategy to ensure the survival of institutions crucial to village life.

"Rural post offices will continue to close."