OVERJOYED villagers were celebrating today after winning a battle to save their post office.

The residents of Stillington, near Easingwold, were spurred into action when the store looked doomed.

They created Stillington Community Association to buy the post officee and run it themselves as a co-operative after postmistress Jenny Nesbit and her husband, Stan, decided to sell up.

A £49,250 grant from the Defra Rural Enterprise Scheme helped the villagers raise the £135,000 needed to buy the post office before today's deadline.

Residents raised the rest of the cash by taking out loans, and buying more than 200 shares in the business.

The villagers will now used volunteers and paid staff to run the post office and plough any profits they make back into the local community.

They also plan to improve the service by refurbishing the shop and stocking new products.

Brian Handley, vice-chairman of Stillington Community Association Ltd, said today: "We are absolutely delighted. Originally, the post office was probably going to be changed into a private dwelling. We felt it was crucial to save the shop because the post office in any village is a hub of activity and vital to the local people, particularly the elderly."

He added that the project had received fantastic support from villagers and the current owners of the shop.

Resident Morwenna Torlesse said: "It is wonderful news. There is a great feeling of relief."

Another villager, Sheila Handley, said: "The post office is the heart of the village. If that goes what have you got left?".

Defra project officer Christine Clark said: "The villagers have shown great initiative to embark on this project, and they have raised a significant amount of funding. We are delighted that Stillington will benefit from the continued existence of the post office."

Updated: 11:08 Monday, June 30, 2003