One in four bank branches vanish

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More than 3,000 have shut since Labour came to power in 1997, despite the creation of a £120million task force to tackle financial exclusion.

The pressure group Campaign for Community Banking Services has found that 2.8million adults, one in 12 households, still do not have a basic bank account.

Shadow Chancellor George Osborne said: "This report gives the lie to Gordon Brown's talk of tackling financial exclusion.

"When you look at the small print you find that one in four bank branches has closed, leaving 900 communities without local banking facilities.

"We pledge to take action to tackle the financial exclusion that is blighting some of our poorest communities.

"Gordon Brown needs to stop thinking about the next headline and start getting to grips with what's happening in the real world. Financial exclusion is a huge problem and requires fresh thinking."

A report by the Citizens' Advice Bureau last year said: "These days a bank account is absolutely essential to function in everyday life, yet one in 12 households in the UK still does not have one."

The Conservatives are proposing more support for credit unions to provide banking facilities in disadvantaged areas as well as encouragement for banks to share a single branch in communities hit by closures.

Earlier this year, Labour announced plans to close 2,500 post offices by the end of 2008, meaning almost 40 per cent of offices open ten years ago will have been axed.

In 1997, there were just over 19,000. By the end of this closure programme there will be about 11,800.