A RURAL market town is to lose another high street bank -the fourth to close.

A branch of the Halifax, run on a franchise basis by an agency out of Paul and Co Accountants, on Galgate, Barnard Castle, has served the town for more than 20 years.

However, the bank recently announced the agency will close the branch from June 30.

In a letter to customers, the closure was blamed on "circumstances beyond the control of Halifax and the existing agents".

While it is believed the accountancy will continue operating as normal, there are no plans to replace the banking service.

A spokesman for Halifax said: "It is not us who have chosen to close it down, it is an agency decision.

"At the moment, there are no plans to replace the branch but we wouldn't rule it out."

Branches of the Halifax are run by agencies in places where the bank would not usually be able to put a normal branch, said the spokesman.

This is the latest in a series of closures in Barnard Castle.

In recent years, the Northern Rock, TSB and the Yorkshire Bank have all closed branches in the town.

Bill Oldfield, chairman of Teesdale Marketing, said: "It seems to be the way with banks these days that, with increased automation, they find it less rewarding to provide high street services.

"Internet and telephone banking are both welcome innovations but there is a need for a presence on the high street to boost the local economy and to stop our towns becoming ghost towns."

Halifax maintains its existing customers will not be left "high and dry".

The spokesman said that, as well as Internet and telephone banking, there are alternative agencies in Richmond and Shildon.

Ian Douglas, 68, from Cotherstone, in Teesdale, travels to Barnard Castle to use the Galgate branch.

He said: "It's elderly people who are going to suffer.

"There are a lot of people like me who wouldn't entertain using telephone and Internet banking.

"There are people who travel into town from all over the Dale who are going to have to travel farther still to find a branch.

"If we want to actually talk to someone direct, then it looks like we will have to open an account with someone else."

No one from the Halifax agency on Galgate was available to comment.