Post Office Ltd is not making profit from any of the Shropshire branches it is threatening to axe, Shirehall watchdogs have been told.

And there was a warning last night that if any office is reprieved, then another in the area will face closure.

Today the national campaign to save post office was being stepped up as local authority leaders met to discuss how they could take on running branches.

The Local Government Association, which represents councils in England and Wales, is holding a conference bringing together campaigners and industry officials to examine ways of saving some of the 2,500 post offices facing closure.

The conference was due to hear that local post offices are a lifeline for communities, especially the elderly.

Shropshire County Council’s economy and environment scrutiny panel spent two hours last night examining the plan to close 28 branches. There was a feeling that most will be closed and the panel agreed to press the council cabinet to find ways of softening the blow, possibly through more broadband places and Customer Access Points.

Concerns were raised that the viability of shops, in which threatened post offices are located, will be seriously damaged if postmasters are penalised for continuing to provide some services.

The meeting heard that postmasters’ compensation packages will be cut if their shops continue to offer services such as the Lottery, Paypoint and phone top-ups, which would take income away from the remaining post office network.

Panel chairman, Alan Mosley, said the council was unable to evaluate the financial position of the various branches because it could not obtain the relevant data.

Mike Dalton, Royal Mail Group’s head of external relations, said financial breakdowns would not be provided to third parties but none of the branches under threat were making a profit.

Patrick Cooper, of the national watchdog PostWatch, said that if any branch was reprieved, it was likely another in the area would come up for closure.