Alderney States prepares to fight Lloyds Bank closure

If the closure, announced yesterday, goes ahead, Alderney would be left with just one banking branch, with HSBC.

Lloyds has also confirmed that it intends to shut its branch in St Martin’s before the end of the year.

Alasdair Gardner, the bank’s islands director, said the closure was proposed due to a ‘significant reduction’ in customers using the branch over the past 10 years.

‘Our customers have more choice than ever in how they bank with us, with many carrying out their everyday banking online,’ he said.

‘We continue to invest in our branches, as seen with the refurbishment of the Lloyds Bank in Smith Street.’

It will leave the bank with just two branches in Guernsey – the Bridge and Smith Street.

The Alderney branch closure has also been blamed on low usage. But the island’s States said the branch was ‘an essential part of the island’s infrastructure’.

‘This decision potentially has a devastating outcome for the island on many fronts, such as employment, economic activity, immigration and social cohesiveness, particularly among our older residents,’ said Policy & Finance Committee acting chairman Ian Carter.

‘We are deeply saddened by the news and are seeking the earliest possible face-to-face engagement with the Lloyds team.

‘Our immediate hope is that the bank will reconsider as Lloyds is a vital part of the fabric of the island both physically on Victoria Street and through the highly-valued staff who discharge their financial responsibilities with skill and diligence, often alongside informal support for their customers.’

He said the States understood this was a commercial decision.

‘We will work with Lloyds and the Chamber of Commerce over the next six months to minimise the disruption this could cause. We are relieved that there will be at least a six-month transition period, in which we trust that Lloyds will demonstrate a degree of social responsibility to us as a community.’

Lloyds has also announced the closure of its Five Oaks branch in Jersey. All closures are part of a move from the bank to cut 34 jobs in the islands and Isle of Man.

The number of banks with a physical presence locally has shrunk sharply over the last decade, with five branches closing over the last five years.

The St Martin’s closure will leave just seven bank branches in the island.