Proposals to shake up pharmacy services could signal the end of traditional chemists.

The warning comes from Sussex pharmacists dismayed at proposals by the Office of Fair Trading (OFT) to scrap regulations.

The move would clear the way for supermarkets to open rival outlets with the power to dispense NHS prescriptions.

Pharmacist Mark England said the increased competition could force smaller, independent chemists out of business as they would not be able to compete with supermarket prices and opening times.

He said: "The tradition of going to your local chemist for a prescription, advice and information could be lost.

"Local pharmacists are able to build up a relationship with their community and help provide a vital service.

"If they go, then patients, many of them elderly, may have to travel further for their prescriptions."

Mr England, who works at Ashton's Chemist in Seven Dials, Brighton, said the proposals could impact on NHS services.

He said: "There has been a drive recently to promote the role of the local pharmacist in the community.

"People are being advised to visit the chemist for minor problems instead of going to their GP.

"If we are not around, people will have to go back to their GP, which could put extra pressure on surgeries."

Under current rules, the NHS licenses pharmacies to make sure they are evenly spread among communities.

If this was scrapped, supermarkets would be able to set up their own outlets, which they say would provide more accessible services for patients and bring down the cost of over-the-counter medicines.

The new recommendations are for any registered pharmacy with qualified staff to be able to dispense NHS prescriptions.

The OFT said removing this restriction would give patients more choice.

Opponents of deregulation fear it would lead to pharmacies clustering around GP surgeries vying for patients' business.

Many also suspect the larger pharmacy chains and supermarkets would take advantage of the free-for-all by opening more outlets and putting independent businesses under pressure.

John Vickers, director general of OFT, said: "Pharmacies are a vital part of the UK health care system but entry regulations are impeding new sources of supply to the public.

"These regulations restrict competition and choice for consumers, impose a regulatory burden and limit the ability of businesses to respond to evolving customer demands."

Supermarket giant Asda welcomed the recommendations and pharmacy director David Miles said: "The current system denies customers lower prices and access to pharmacies where they want them."

The Government has 90 days in which to respond.