THE mayor of a north Cumbrian town has warned that 'rural communities will suffer the most' as yet another high street bank closed its doors.

The Barclays branch on Market Square in Penrith closed on Wednesday, April 17, making it the third to close within the year. 

Mayor Doug Lawson, and chair of Penrith Town Council, says it's a 'particularly daunting' for the town.

"Cumbria as a whole has an aging population and a low-wage economy; both of which make access to cash machines and face-to-face contacts vital," he said. 

Barclays said that despite figures showing 103 customers use this branch regularly as the only way to do their banking, 89 per cent of people who use the branch also banked using the app, online and by phone in 2022.

The nearest physical Barclays bank is now located on Carlisle's English Street. 

In response to the closure, the bank has launched 'Barclays Local' at The George Hotel on Penrith's Devonshire Street.

It will allow in-person banking support to be continued.

It will be available from Mondays to Thursdays from 9 am to 4pm and Saturdays until 2 pm. 

Similarly, Lloyds has a monthly hub at the Eden Foyer for account holders. 

The town's Lloyds Bank on King Street and Halifax on Middlegate closed in March. 

Penrith Town Council has 'committed' to plans to 'stop the rot' of closed stores and banks, with hopes of bringing in a 'new era' for the town. 

"Penrith Town Council recently committed to creating a Regeneration Plan for the town, that encompasses all the needs and requirements of the highstreets, and the residents," the mayor said. 

"We are clear that we want to work with the Westmorland and Furness unitary authority to stop the rot of closed stores and banks as well as the many other challenges the town faces in our modern world. 

"I wrote to the CEO of Westmorland and Furness some weeks ago to highlight this commitment and to request initial meetings to define how we work together - I'm looking forward to a response that hopefully will kickstart a new era for the town," he said. 

Previously, the president of Penrith Chamber of Trade & Commerce, Stephen Macauley, the closures are an 'inevitability' but the town has to take advantage and repurpose these buildings now they are empty.  

Dr Neil Hudson, joining forces with 56 other MPs, has been advocating a change in the Financial Conduct Authority (FCA) rule which currently prevents LINK from proposing a banking hub until the closure of the last bank in town. The FCA's final decision will be made in the third quarter of 2024. 

If you have a personal or business account with Barclays, you can also use the local post office for banking services. 

A Barclays spokesperson said: “Barclays is committed to deploying a range of more flexible ways that customers can physically interact with the bank, this includes over 330 banking sites located in town centres, with a presence in spaces such as community centres, libraries and business hubs where it offers drop in and pre-booked appointments.

“We’re delighted to launch the replace banking service here in Penrith.

"This represents our commitment to customers and the local community who wish to continue to have an in-person banking presence by offering the ability to visit Barclays on their local high street, albeit in a different environment," they said.