PENRITH has been hit with the closure of two banks this week, signalling the decline of access to essential financial services. 

On March 19, Lloyds Bank on King Street and Halifax on Middlegate shuttered their doors for the final time following a significant decline in in-person transactions over the past five years.

The town's Barclays branch is also set to close on April, 17. 

Regarding Lloyds Bank, a review stated 288 people were using the Penrith branch on a regular basis, of which a majority are aged between 55-74, with transactions for personal customers having decreased by 57 per cent. 

President of Penrith Chamber of Trade & Commerce, Stephen Macauley, said:  "There is an inevitability to it, we don't all use banks on a daily basis.

"For Penrith, it will have a negative impact if we don't take advantage of the situation," he said. 

He emphasised the importance of these banks for individuals who come to Penrith for their banking, often leading to subsequent shopping trips aiding the overall market town trade.

 Despite numerous closures on Penrith's high street, he also pointed out that many new businesses had emerged since the beginning of the year. 

"Although there is a narrative that there is a decline in the high street, I do think Penrith is resilient.

"Part of that is due to the shop size with a lot being independent, the biggest challenge is what to do next with the empty buildings. 

"The town has to get together and work out what they want to do with the town centre and reuse these buildings when they become available," he said. 

Mr Maccauley advocated a banking hub for the town, where people can meet a clerk as being the 'way forward', similar to one that was launched in Maryport last year. 

Rallying beside 56 other MPs, Dr Neil Hudson has called for change on the Financial Conduct Authority (FCA) rule that restricts LINK, the body assessing community cash needs, from suggesting a banking hub until the last bank in the town closes.

A response by Nikhil Rathi, the CEO of the FCA, has indicated more effort will be put into delivering new cash solutions, with the FCA's final rules on banking hubs due in the third quarter of 2024.

"Local bank closures have been incredibly dispiriting - especially for my many constituents dealing with digital connectivity challenges and long journeys to their next closest branch," Dr Neil Hudson said. 

"In response, I have thrown my weight behind a cross-party campaign for banking hubs to step in early - offering face to face access to cash and a host of other banking services on the high street.

"Having now received a reply from FCA bosses, I am optimistic we will see proactive action on the issue, moving away from the 'last bank in town' model, instead genuinely considering each community's case based on its access to cash. 

"It goes without saying changes won't be imminent and in the meantime, I will continue banging the drum for high street banks.

"If any residents are especially concerned about their own access to banking services, please do get in touch, I and my team will be happy to help you," he said. 

A Lloyds Banking Group spokesperson said: “As many customers now choose to bank through their mobile app or online, visits to our Lloyds Bank and Halifax Penrith branches have fallen over recent years. 

"The local Post Office in each town offers everyday banking, with cash also available at close-by free-to-use ATMs.

"Customers can also manage their money through our mobile banking apps, online, by calling us or speaking to a community banker.”

Penrith's Lloyds Bank is currently on the market and is available to rent at £30,000 per annum.