Totnes becomes latest town to lose bank as hub bid is rejected

A South Devon MP has said she is “deeply disappointed” after a national banking organisation ruled that Totnes does not need a banking hub, despite the town losing its last remaining bank.

Totnes’ Liberal Democrat MP, Caroline Voaden, has been lobbying LINK for several months after Lloyds announced plans to close its branch in the town, leaving residents and businesses without in-person banking services.

Following the closure announcement last September, Ms Voaden submitted a formal cash access review to LINK - the body responsible for assessing whether communities require banking hubs - and said she had expected a positive outcome.

However, LINK has now concluded that Totnes can continue to manage with existing cash machines, Post Office services, and access to banking facilities in neighbouring towns including Brixham, Dartmouth and Paignton.

Ms Voaden said local businesses and vulnerable residents had repeatedly warned of the impact of losing face-to-face banking, particularly for those who rely on cash or are unable to bank online. Armed with a petition signed by more than 1,200 people, she appealed for government intervention.

Now, with the Lloyds branch closed, LINK has confirmed the outcome of its review, stating once again that Totnes does not meet the criteria for a banking hub.

“The decision has no grounding in the lived realities of residents, businesses and the wider rural community,” Ms Voaden said.

“I am deeply disappointed with LINK’s decision. Their response to my appeal did not adequately reflect the issues I raised, nor the lived realities of residents, businesses and the wider rural community that relies on Totnes.

“But while it is tempting to criticise LINK, their decision is symptomatic of years of successive governments turning a blind eye to the impact of such closures on rural communities. How many ministers have missed the chance to act when banking services in rural areas like ours disappeared?”

She said the ruling would not mark the end of her campaign.

“I will be pushing the government to urgently review the criteria used to grant a banking hub,” she said. “The current focus just on access to cash is far too narrow and will lead to more cases where places that need banking services, like Totnes, are denied because they don’t tick the right box.

“There is more to a bank than cash - and it’s time the legislation reflected that.”

The decision comes amid a continued reduction in high street banking across South Devon and Torbay. In autumn 2025, Halifax closed its Paignton branch in October, while NatWest shut its Torquay branch in September and its Paignton branch in October. These marked the final NatWest branches in Torbay, following earlier closures in Brixham, Lawes Bridge and St Marychurch.

Earlier in 2025, Santander closed its Torquay branch in June.

In late 2024, Lloyds shut its Fleet Street branch in Torquay in November, while TSB closed its St Marychurch branch in October.

In March 2023, Barclays closed its branch at 39–40 Fleet Street in Torquay as part of a national programme of closures, citing a shift towards online banking. The nearest Barclays branch is now on Palace Avenue in Paignton – a journey that can be difficult for older residents and those without access to digital services.

Campaigners argue that the cumulative effect of these closures has left many residents - particularly older people, small businesses and those without reliable internet access - increasingly isolated from essential financial services.

LINK has previously said its assessments are based on access to cash and alternative services, rather than the availability of full banking facilities.