MOVES to restructure the Post Office in a bid to curb falling profits could see the closure of branches in South Lakeland and Furness towns.

Letters went out this week to all sub-postmasters in urban branches - in towns of more than 10,000 residents, such as Kendal, Ulverston and Windermere - asking their opinion on their branch's future as part of a major shake-up.

Possible changes include relocation to a more suitable site, merger of nearby branches or even closure as the Post Office looks to shut up to 3,000 offices over the next two to three years.

Sub-postmasters could receive investment grants to modernise and improve their branches, while those who close are expected to receive compensation equalling two years' remuneration.

Post Office executive director Alan Barrie said: "Profitability is reducing to the point where it is increasingly difficult for sub-postmasters to run viable businesses let alone invest in the future."

Treasurer of the National Federation of Sub-Postmasters' Cumbria branch Janet Semple, of Kirkby Stephen post office, said: "This has been on-going for a while now.

Everyone has been aware of it and waiting to hear has been quite tense for a lot of people."

She added: "While none of us want to see offices closing I am all for making offices bigger, brighter places.

We have to move forward and look to get the best out of what we have.

For years we have muddled on but now, with being able to pay bills, buy stamps and do transactions in many places, we have to offer something better.

If that means there are some casualties along the way so be it."

Rural post offices have also been informed of the restructuring, but are not directly affected by the changes.