Lloyds Bank has announced that its Welshpool branch will be closing next year, deepening a banking crisis that has descended on the town recently.

On July 20, Lloyds said it intends to close its Welshpool branch on January 26, 2023, stating that the decision has been made in response to changing behaviour of how customers bank.

It follows hot on the heels of Barclays announcing its intention to withdraw from both Welshpool and Newtown.

Lloyds has confirmed that there will be no redundancies, as staff of the Welshpool branch will be redeployed to other roles.

The bank has assured customers that they will still be able to access day to day banking services at the Post Office, and a community banker will be available within Welshpool to assist customers following the branch’s closure.

The branch closure has been reviewed by LINK, the UK’s Cash Access and ATM network, to assess the effect of bank branch closures on communities and identify where new shared facilities are needed, and it has recommended that a permanent banking hub be opened in Welshpool.

Craig Williams, Welsh Conservative MP for Montgomeryshire, has scheduled urgent discussions with representatives from Lloyds.

Mr Williams said: “Lloyds’ announcement that it will be closing its Welshpool branch is of course exceptionally disappointing news.

“Whilst I am relieved that Lloyds have assured me there will be no staff redundancies, their decision represents an enormous blow to its customers and local businesses, as well as Welshpool as a whole.

“I will be holding urgent discussions with Lloyds’ representatives imminently to discuss this decision in more detail, including its plans to implement a community banker within Welshpool.

“Above all else, I want to ensure Lloyds’ loyal customers are not completely disenfranchised by this move and that the support they require remains available.

“Following Barclays’ decision to close its Welshpool branch in September, Lloyds was to be the last remaining bank with a physical footprint within the town.

“It is my firm view that there remains a strong need for banks to maintain a high street presence within rural communities.

“It is therefore of some comfort that LINK will be establishing a permanent shared banking hub within Welshpool.

“Over-the-counter services remain of vital importance to many customers who prefer not to bank online, or who are simply unable to given the nature of rural constituencies such as Montgomeryshire.

“I look forward to discussing with LINK how this will be implemented soon.”