Last bank on the Isles of Scilly set to close down
THE only bank on the Isles of Scilly has announced it is set to close, to the dismay of locals and businesses.
The branch of Lloyds on St Mary’s will close its doors in 2022 – leaving the Scillies with no banks at all.
The move follows the expected closure of a total of 48 Lloyds and Halifax banks across the UK next year.
Phil Moon, who runs a restaurant and takeaway on the island, told the BBC that the closure had come as a “shock”.
Lloyds Bank said the decision was due to changes in customer behaviour meaning the branch was used less often.
Mr Moon said: “We lost Barclays a couple of years ago and Lloyds became the only bank on the island so we never saw this coming.”
A Lloyds spokesperson said people can still use the local Post Office.
The spokesperson said: “A new community banker will be made available to help customers with their everyday banking and customers can also continue to bank locally by visiting the nearby Post Office, which is a short walk away from the branch.”
Mr Moon said using the Post Office would see people “who just want to do bank transactions” having to join the queue for those wanting stamps or postal services.
“It’s just going to slow things down and make things more complicated,” he told the BBC.
In the summer Lloyds said that nationally more people were banking online. Vim Maru, retail director for Lloyds Banking Group, said: “We’ve seen our digital banking customers grow by over four million in five years, to almost 18 million, of which 13.6 million also choose to be active app users.
“This means that, like many businesses on the high street, we must change for a future where branches will be used in a different way, and visited less often.”
Meanwhile there are concerns about transport links to the archipelago and a bid has been put in to ensure future ferry connections.
As recently reported, transport to and from the Isles of Scilly, which have enjoyed high demand for holidays during the pandemic staycation boom, could be transformed if a bid for £48 million from the Government’s Levelling Up fund is approved.
With passenger and freight vessels said to be nearing the end of their operational life the Council of the Isles of Scilly has pinned its hopes of providing new boats on the Government funding.
Support for the bid has come from Cornwall Council, St Ives MP Derek Thomas and the Duchy of Cornwall as well as a number of other public sector organisations and stakeholders.
If successful the £48m would be used to buy three new vessels and carry out harbour works which will support the new vessels.
Chairman of the council, Robert Francis said: “This bid to the Levelling Up fund is of the utmost importance to the islands as the investment would ensure the preservation and improvement of our lifeline shipping transport for years to come.”
There are currently three vessels operated by the Isles of Scilly Steamship Group (ISSG) which provide services to the islands. The vessels – Scillonian III, Gry Maritha, and Lyonnese Lady – are reported to be “nearing the end of their economic lives, and are increasingly out of service causing major disruption to visitors, the community and Scilly’s economy”.
A report from the Council of the Isles of Scilly setting out the need for Levelling Up money states: “If this bid is not successful, it is inevitable that there will be a spiral of economic decline, increasing costs to residents for travel and the essentials of life, and ultimately there being no sustainable transport connectivity to the mainland to support the community on the Isles of Scilly.”