A Sheffield Post office has been granted permission to run as a convenience store and will be allowed to sell alcohol for 24 hours – which owners claim is a last resort to stop the business having to close.

The decision, made by the Sheffield City Council’s Licencing Sub Committee on 11 March, has raised concerns about the potential impact on the local community.

Nirujan Alponce Thavarasa, who attended the meeting, said: “The owner of the post office has had this property up for sale for up to two years and he wants to retire but no one has bought this business because they know that the post office would not be able to meet the capacity of the new rent and the rates etcetera.”

The landlord wants to increase the rent from £800 a month to £2,200.

Despite the decision to grant the licence, the move has drawn objections from local councillors and residents. Councillor Brian Holmshaw expressed concerns.

He said: “I am concerned about the concentration of late-night licences in this heavily-populated residential area of the city.”

He objected in terms of the prevention of public nuisance given the extremely the long opening hours being applied for.

His solicitor, Lohi Loganathan has reassured the council that strict conditions had been negotiated with the police to address these concerns.

She said: “We have negotiated the licensing agreements with the police, and they are quiet happy with what we have agreed. Also there is the option for the police if they don’t follow these obligations and conditions to revoke their license.”

Conditions include keeping an incident log on the premises, as well as providing CCTV footage to the police and authorised council officers for use in preventing and detecting crime and disorder.

The post office has made it clear that the 24-hour alcohol licence is a crucial step in ensuring the continuation of the business. Without it, they would be unable to meet the financial demands of the property, and the business would likely face closure.

“We have applied for a 24-hour licence so that we can carry on at the post office at that location,” said Loganathan.