HOPES of rescuing a counter payment scheme in three South Lakeland towns have been dashed after councillors backed the controversial cost-cutting decision to axe it.

Cash desks at South Lakeland House in Kendal, Langstone House in Windermere, and Ulverston Town Hall, are due to close in January 2006 following the failure of a last-ditch attempt to save the service.

From next January, citizens will no longer be able to pay council tax bills, rent for local authority housing or parking fines in cash and will have to consider alternative schemes of payment such as direct debit. The council is hopeful that the decision will result in annual savings of £130,000.

Three councillors Phil Lister, Jean Ewing and Tony Rothwell wanted to save the service and referred the original cabinet decision to a scrutiny committee meeting.

However, their attempt failed to gain support from fellow members.

Coun Lister had argued that residents from at least 15,000 households spread across Kendal, Ulverston and Windermere did not want to pay by direct debit.

He said that post offices were not a suitable alternative to the counter payment scheme.

"We do not know how many rural post offices will still be open in six months' time.

"People in Windermere and Kendal are also reluctant to use their post offices because they are often very busy," he said.

However, several councillors backed the money-saving measures.

Coun Graham Vincent claimed that people should be able to make suitable alternative arrangements to make the payments.

"People have made provisions to pay other bills such as gas, electricity and water so why can they not do it for this? I think it is just a question of educating people," he said.

Council leader Colin Hodgson argued that the decision to close the cash desk services could benefit post offices, if people used them to pay council bills.

For further advice on alternative payment methods, telephone the council on 01539-733333 ext 7171.