HYNDBURN Council is threatening to withdraw its business from the National Westminster bank following the high street giant's decision to shut its Oswaldtwistle branch.

The council signed a three-year deal with the bank on April 1, just days before it was revealed the Union Road branch was to close

Hyndburn's director of finance Dan Sherry said if the council had known before the deal was signed, the local authority would have looked elsewhere for a banker.

Many payments the council makes to the public are by Nat West cheque and Mr Sherry said the accessibility of local branches was a factor in the council's decision to open an account with the bank.

He added: "Now we must stay with Nat West for another three years then review the situation. If the bank no longer has a presence in Oswaldtwistle we will look at other options."

The closure has come five years after the Midland Bank closed its business in Oswaldtwistle. The TSB is the only remaining bank.

Mike Chambers, Hyndburn's chief executive, said: "Traders in Oswaldtwistle are angry because many use Nat West's night safe facility, and the bank is very handy for local shoppers. Its closure will have an adverse effect on the area's trade.

"We are also concerned because this building is within our Conservation Area and we don't want to see it empty."

Local councillor Bill Goldsmith said: "This is bad news for Oswaldtwistle. It will encourage people to travel to Accrington for Nat West services - where those customers will no doubt do their shopping.

"I will be encouraging the council's finance department to stop dealing with the bank in future."

Sarah Ritchie, Nat West's assistant manager for branch development in the North West, said: "Following a review of our branch representation in East Lancashire the Oswaldtwistle branch is to close on May 17.

"The decision was not taken lightly and we monitored the business volumes transacted, average number of customer visits and the operational costs of the unit."

The closure is part of a restructuring by the bank which will result in the loss of 15,000 jobs across the country.

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