Post Office managers who plan to axe 3,000 outlets have not acted "appropriately or with sufficient sensitivity", the Government has admitted.

Ministers turned their fire on Post Office Ltd for the way it has consulted local people on closures and announced measures to calm communities which are losing their sub-post office.

The Liberal Democrats insisted the changes did not go far enough and demanded a review of the 680 closures already carried out.

Stephen Timms, the postal services minister, admitted: "There has been mounting evidence that in too many cases Post Office Ltd has not handled them appropriately, or with sufficient sensitivity."

Mr Timms said changes would include advising MPs and local councils as soon as possible of the timetable for starting consultations on plans for their area.

Councils will be encouraged to provide information on infrastructure and regeneration projects to help with the Post Office's plans and MPs and Postwatch must be advised of Post Office proposals a week before public consultation starts.

Liberal Democrat spokesman Malcolm Bruce said: "It has taken 14 months for the Government to finally admit the closure programme is a total fiasco.

"What about the post offices that have already closed?"