The Post Office gave more details yesterday of plans to transform its network of branches across the UK, particularly in rural areas, over the next three years as part of a £1.34 billion investment programme.

The network wants to see more and more postal services being available as part of the normal offering from businesses such as local shops and garages.

Those premises involved will not have a separate post office counter, meaning customers wanting to access pensions or post a parcel will be in the same queue as somebody wanting to buy milk, bread, petrol or diesel.

These "PO Locals" are currently the subject of pilot schemes at 134 locations in Devon, Gloucestershire, Hertfordshire and South Yorkshire, but Scotland will be included when the three-year programme starts its UK roll-out next summer. Other formats for delivering postal services are also being considered.

According to the Post Office, up to one in five existing UK post offices could be affected by the changes.

However, the Post Office categorically denied reports earlier this week that it was preparing to close 2000 small rural post offices throughout the UK next year, insisting: "No further Post Office closure programme is planned."

A Post Office Ltd spokeswoman said: "This is a Government investment and we are waiting on state aid clearance. At this stage it is not possible to say how many will be in Scotland or where they will be located. 

"It is a voluntary programme. Subpostmasters will be asked if they are interested in exploring the new models for their branch."

Business owners, the spokeswomen said, would be offered 18-months' salary if they agreed to convert into a PO Local.

"Nobody will be paid just to close down," she added.

She said it was untrue that PO Locals would mean delivering a significantly reduced service.

"In fact Post Office Local branches already offer over 95% of the transactions that customers typically undertake at any Post Office outlet.

"The main products that the service doesn't offer – Motor Vehicle Licences, Passport applications, On-demand Bureau de Change – are already only available to customers at selected branches within the Post Office network."

She said that each PO Local operator and their staff would be fully trained by Post Office Ltd. It would then be the responsibility of the operator to train any staff they subsequently employed.

Annie McGovern, postal expert at Consumer Focus Scotland, said it may lead to a gap in services.