Full Post Office services will remain in Morecambe but not necessarily in the current location - it has been announced.
The Post Office has said it will offload the remaining 108 branches it directly owns - including Morecambe Post Office on Victoria Street.
These Post Offices, currently directly managed, will be replaced by a franchised branch under new ownership offering the same services, as part of a new deal announced today by the Post Office and the government.
It means Morecambe will retain a Post Office branch either in the same location or within one mile of the existing branch.
About 1,000 staff working in the 108 branches nationwide will be offered a choice to move to work for any new owner or take voluntary redundancy.
It is understood the Post Office has received interest from potential retail partners including Tesco and Ryman, as well as sub-postmasters, to take on its loss-making branches.
Gareth Thomas, Post Office Minister, said the fully franchised network would ensure the sustainable future of post offices in communities across the UK.
Lizzi Collinge, MP for Morecambe and Lunesdale, said: "I am pleased that after my lobbying to the Post Office and Ministers, Morecambe will keep full post office services, albeit not at the current crown post office.
"I will be watching developments closely as it's important that services remain accessible to everyone who needs them but particularly older and disabled people.
"I understand that fewer people need Post Office counter services than previously, but they remain vital for many people and are necessary to keep in Morecambe."
The Post Office has confirmed that all communities currently served by a directly managed branch will have at least one main branch within a one-mile radius of the existing office, meaning customers continue to have access to full products and services, including cash deposits and withdrawals and key government services, such as passport applications and DVLA services.
The service also said that accessibility will be protected by securing the right locations for customers, reflecting shifting patterns of footfall in each area.
The Post Office has also confirmed that where a relocation is proposed, wherever possible, they will ensure any new branches are open by the time the directly managed branch stops trading to ensure customers face no break in service.
The Communication Workers Union (CWU) has called for the government to intervene immediately and examine alternative options.
"The Post Office's claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop," said Dave Ward, CWU general secretary.
A strategic review of the Post Office business was called in May, by new chairman Nigel Railton, in a bid to stabilise finances.
The Post Office was looking at options for the future of its business, including the closure of loss-making branches including Morecambe.
Campaigns and petitions were launched to save the Morecambe Post Office, with the CWU calling the proposals "immoral".
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