SOME postmasters in the Basingstoke area could receive letters from Consignia detailing plans of a scheme to axe up to a third of Hampshire sub-post offices.

The closure and modernisation programme will affect what are classed as urban branches in areas where there are more than 10,000 people.

Sub-postmasters in loss-making urban sites will be offered up to £67,600 to close under a national £270 million "compensation" package. The cuts come on the back of losses of more than £100million.

Consignia wants surviving branches to provide a wider range of services and is offering grants to them to start new ventures such as internet cafes.

Company spokesman Dan Panes said a proposed structure change of the urban post office network should increase the viability of remaining post offices in areas where there are currently many post offices.

He added: "We have a policy that 95 per cent of the population should live no more than one mile from a post office and that the majority of them should live within half a mile of one."

Rural post offices are protected from the cuts but this fact has not served to dampen criticism of the planned cuts from some quarters.

Chris Perry, director of Age Concern Hampshire, said: "Obviously, as far as older people are concerned, not having access to a post office is a blow."

Andy Straker, south east regional secretary of the Communication Workers Union, said: "This is no better than vandalism by the company and the Government. It's about time they turned the Post Office around rather than shutting branches."