Lloyds Bank closures: Shropshire branches in peril after Brexit

Lloyds Banking Group is closing 200 branches and cutting 3,000 jobs in the wake of the Brexit vote.

It says it fears a downturn in the economy as it braces itself for a cut in interest rates following Britain's decision to quit the European Union.

None of the branches affected has been named, but our region is likely to be vulnerable because of its rural nature and its number of smaller branches. The cuts will happen over the next 18 months.

Lloyds has three branches in both Shrewsbury and Telford, and one in Market Drayton, Malpas, Ludlow, Cleobury Mortimer, Bridgnorth, Broseley, Newport, Welshpool, Newtown, Llandrindod Wells and Leominster.

It has already announced the closure of its Shifnal branch, claiming earlier this month it has only 15 regular weekly users.

The bank also employs 1,800 at its operations centre on the Pendeford Business Park near junction two of the M54. Hundreds more work at its offices in Birmingham.

Lloyds, which is part state-backed, said it was extending the cost-cutting programme it announced in 2014 and the "expected lower for longer interest rate environment".

The Bank of England is widely expected to cut interest rates from 0.5 per cent to 0.25 per cent next week as the fallout from the Brexit vote intensifies.

Lloyds is targeting £1.4 billion in cost savings by the end of next year.

The total number of jobs cut since the announcement of an efficiency drive in 2014 will stand at 12,000 by the end of next year. The latest 200 branch closures come on top of another 200 already earmarked for closure at Lloyds, which is nine per cent owned by the Government.

The bank made the announcement alongside results for the first half of the year, which saw statutory profits more than double to £2.5 billion, but the lender warned that Brexit could have an adverse impact on its future performance.

"Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage. However, while the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided," the bank said.

Chief executive Antonio Horta-Osorio added that, following the referendum, the outlook for the UK economy is "uncertain" and a "deceleration of growth seems likely".

He added: "The UK, however, enters this period of uncertainty from a position of strength, following continued private sector deleveraging, significantly improved mortgage affordability and low levels of unemployment."

Rob MacGregor, national officer at Unite, warned against "cutting too far too fast" and said that the union would do everything in its power to oppose the cuts.

TUC general secretary Frances O'Grady urged the Government to act now to secure jobs and investment before "thousands of working people pay the price of Brexit with the loss of their job".