A HAMMER blow has been delivered to the 3,000 residents of Sedbergh after it was announced the town's last two remaining banks are to close in the New Year.

Within the space of 48 hours, NatWest and Barclays both said they are to shut their doors on January 26 and February 13 respectively.

The announcement has prompted South Lakes MP Tim Farron, who labelled the closures as a 'betrayal of the community and the taxpayer', to table an Early Day Motion (EDM) in the House of Commons calling for a rethink.

"I am deeply worried about this announcement and I hope that the Chief Executives come and explain their decisions to local people, rather than hide behind press officers and their desks in London," said Mr Farron.

Around 70 Sedbergh residents held a protest outside Barclays on Tuesday afternoon.

Hilary Hodge, chair of Sedbergh Parish Council, described the situation as 'devastating' and a 'disaster' for the town.

Andy Cobb, chair of the Sedbergh and District Chamber of Trade, said the closures would have a negative effect on businesses by pushing walkers, tourists and residents away from town centre shops towards the only ATM left in the town at the Spar.

Peter Jackson, postmaster at Sedbergh Post Office, delivered a mixed verdict on the news. "I am wearing two hats and it's a double-edged sword for me. The extra footfall and income will be great for us but for the town I think shutting two banks is a disaster.

"It sends all the wrong messages about what the town is about. We are trying to promote it with events like Sheep Fest but people will get here and there will be nowhere to get money out in the centre."

Anne Pierson, of Farfield Mill Arts and Heritage Centre, said: "Why should we be penalised for living in rural areas. We are like second class citizens. It is also going to affect people living in hamlets and outlying rural areas like Dent."

Amid fears more branches in the area are on the radar for closure, Mr Farron has also asked for all UK banks to 'voluntarily recommit to retaining branches in towns where a closure would remove all banking services from the town.'

Across South Lakeland, six banks will close in the next three months and last week Lloyds TSB announced 150 branches were in the firing line - with 9,000 jobs at stake.

Barclays at Ambleside is due to shut on December 5 as well as NatWest branches at Bowness (January 5), Shap (November 26) and Milnthorpe (January 28).

Derek French, director of Campaign for Community Banking, said it is an 'escalating problem'.

He said throughout the UK this year 430 banks have or will close with 117 of those the last bank in the community. He added that figure had doubled from last year and was expected to get worse in 2015.

Mr Farron said he has been inundated with letters and phone calls from concerned Sedbergh residents.

In his EDM he called on the banks to 'fulfil their ethical duty to customers at a time when public trust in the sector is at an all-time low'.

"We contributed to bailing out the banks in the disaster of 2008 but this is how we are repaid," he told the Gazette. "This is a betrayal of the community and the taxpayer that helped to keep them going."

The MP met with RBS bosses on Tuesday and said he hoped to meet with Barclays in Sedbergh next week.

Both NatWest and Barclays blamed the closures on a drop in footfall.

NatWest said there has been a 16 per cent drop over the last few years while Barclays said there had been a 32 per cent reduction since 2008.