VILLAGERS are buying £10 stakes in their local post office in an effort to throw the struggling business a lifeline.

Residents of Stillington, near Easingwold, have bought more than 200 shares in a co-operative aiming to raise enough cash to buy the shop.

If they succeed, any profits made by the post office would be ploughed back into the community.

The villagers' move boosts cash from a loan already secured with a local bank, while grants have been applied for and gifts and loans of money have been offered by local people.

It is hoped the community can find the £135,000 asking price for the business before the deadline of the end of next month.

Action group Stillington Community Association Ltd formed after postmistress Jenny Nesbit and her husband, Stan, announced years of poor returns had forced them to sell up.

It could be one of the first times a post office is owned and run by its local community.

A survey of the village's 1,380 residents has devised ways to improve the shop to offer a better service and help secure its survival.

Co-operative member Harry Silcock said: "We have drawn up a business plan which has been well received by the bank. We need to improve the post office, refit it and stock new products. We could sell items such as wine and ready meals, and perhaps buy a photocopier that the village can use.

"There's been a terrific response from the community to make it happen, community spirit is very strong. I'm very hopeful that we'll do it."

Updated: 11:02 Thursday, May 29, 2003