LLOYD'S decision to shut every UK branch of Cheltenham and Gloucester will be the first of many bank closures which will ravage the High Street, it has been claimed.

Homeowners could also be faces with higher mortgage payments as a result of less competition in the market, according to Andy Merricks, head of investments at Skerritts Consultants in Hove.

Dozens of Sussex jobs are at risk following Lloyd's decision to axe all 164 UK C&G branches, including those in Brighton, Burgess Hill, Chichester, Crawley, Eastbourne, Horsham and Worthing.

It follows the banking group's massive debts taken on when it merged with Halifax Bank of Scotland (HBOS), which needed a massive taxpayer bail-out after suffering heavy losses in the credit crunch.

More than 3,000 banking jobs have been axed so far as a result. Derek Simpson, Unite joint general secretary, described the latest cuts as "nothing short of disgraceful".

He added: “Hundreds of staff who have worked hard for years to make the C&G brand a success will view this news as a kick in the teeth.”

The loss of C&G branches follows an announcement from Santander last week that it is to rebrand Abbey, Bradford & Bingley and Alliance & Leicester.

Mr Merricks believes more High Street names will disappear as the UK's remaining banking groups consolidate.

He said: “There will be vast swathes of the High Street empty. When an industry such as banking is under the cosh as it is then why pay for these branches when they don't need them.”

Woolwich, which is owned by Barclays, could be next to go while it is likely that Halifax branches will shut where they are near branches of Lloyds.

Mr Merricks said: “To be hones it has surprised me that it has taken to close the C&G branch network.”

Mr Merricks said it was “inevitable” that homeowners will also be faced with higher mortgage payments in the future.

He said: “It is inevitable mortgages will eventually creep up because if you haven't got choice you haven't got competition.”

More closures on the High Street is further bad news for towns such as Worthing, which has already seen its High Street lose retailers such as Woolworths, bookseller Methvens, two branches of Rosebys and the Portman building society, among others.

Town centre manager Sharon Clarke said: “It is always sad when people lost their jobs and we lose another name on the High Street. To be honest we have been expecting this because the banking sector has been one of the hardest hit in the recession.”

On a positive note, Ms Clarke said clothing retailer H&M is due to move into the former Woolworths site while Tesco, a bakery and independent store How Bizarre are all due to open soon.