AN MP has criticised big banks for 'walking away from East Cleveland.'

In a Commons speech, Dr Ashok Kumar said two of the big clearing banks had turned their backs on customers and businesses in the area.

And he accused banking 'fat cats' of flying in the face of bids to sustain isolated communities.

As part of an adjournment debate, he singled out Barclays, which has closed branches in Skelton and Brotton, and NatWest which is planning to shut down its Loftus branch next month.

Barclays also shut its branch in Great Ayton.

Dr Kumar, MP for Middlesbrough South and East Cleveland, said Barclays was prepared to see customers make long and tedious journeys into Saltburn or Guisborough simply to cash a cheque or to allow a village shopkeeper to cash in takings.

He said many local employers such as Corus at Skinningrove and Boulby Potash were paying wages into branches which were closing.

And he ridiculed the fact that the only suggestion from NatWest when tackled about the closure at Loftus was to tell customers to use a 'cashback' facility at a local supermarket.

Dr Kumar said later: "These banks are walking away from east Cleveland.

"They have made many hundreds of millions over the past year and are awarding their bosses big pay rises, but at the same time slapping customers and businesses in East Cleveland villages in the face with branch cutbacks and closures.

"Actions such as this by banking fat cats simply fly in the face of government attempts to keep local business alive through keeping banking facilities in isolated communities ad to build business partnerships which would involve the banks in boosting the financial health of the areas from which they draw profit."

Dr Kumar said the government must now look at alternative ways in which community financial services could be provided.

"We need to look at a new role for post offices and possibly build up credit unions," he said.

"But, above all, the government must make the big banks face up to their social obligations."