BIG banks are being urged to keep branches open in small towns where there are no other banks left.

The call by business secretary Vince Cable follows announcements by three major high street banks that they intend to close branches.

Lloyds Banking Group confirmed last month that it would be cutting 9,000 jobs along with the net closure of 150 branches over the next three years.

Although the bank said it would concentrate on closing urban branches, it has abandoned its pledge to keep open "the last branch in town".

Meanwhile, Liberal Democrat MP Tim Farron has urged Barclays and NatWest to honour the same pledge for residents and the community in Sedbergh, Cumbria.

Announcements by both Barclays and NatWest to close their branches would 'be a huge loss' for the area, said Mr Farron.

The Westmorland and Lonsdale MP is working with local residents calling on the banks to make a U-turn on their plans.

Both banks blame a decline in footfall for their closure plans. But the nearest bank when both branches close will be in Kendal, an 11 mile trip.

The Post Office is stepping up to offer some services but the banks are removing their cashpoints from the high street.

Mr Farron, who has tabled an Early Day Motion in parliament about the bank closures, said it was a deeply unsettling time for staff, residents and local businesses.

"Residents are incredibly angry about this and I hope that my meetings and discussions with senior banking executives will make them see sense," he said.

"My message to them is clear: you have received help and in some cases bailouts from taxpayers, many of whom are in the Lakes. We now need your help – don't let us down.

"You have an obligation to us."

Sedburgh councillor Evelyn Westwood added: "People are horrified at the prospect of the banks closing.

"Traders fear it will hit their businesses and the residents, especially the older ones, are sick with worry about how they are going to manage."