Small firms in the district are under threat from government proposals.

The Association of Chartered Certified Accountants (ACCA) says the livelihoods of people running small businesses in rural communities are being put at risk by government reforms which include plans for benefit payments to be made directly into bank accounts.

Currently, around 15 million people collect their benefits and state pensions by using order books or giros. From April 2003, the government will start to phase out these methods.

Payments will be made directly into bank accounts or into a new card account at the Post Office.

Andrew Harding, executive director for ACCA UK, said: "The sub-post office, which currently receives a third of its income from paying benefits over the counter, is relied upon by thousands of small businesses in rural communities.

"If these proposals result in the closure of small post offices, small business people will be forced to travel much further in order to deposit or withdraw money and to post important packages.

"If payments of benefits over the counter are phased out as the government intends, anyone who is not familiar with banking will suffer as a result.

"While this will affect everyone, the greatest impact will inevitably be on the most vulnerable people - the elderly and disabled."