STATE-OWNED British banks have “turned their back on communities,” unions said yesterday after 158 branch closures were announced.

Almost 1,000 workers will be affected by the Royal Bank of Scotland (RBS) announcement, which put 472 jobs at risk.

Most of the 128 branches affected in England and Wales operate under the NatWest banner, while 30 Scottish branches of RBS could also go.

The bank, which is majority state-owned, said counter transactions had fallen by 43 per cent since 2010 amid soaring use of internet and mobile banking.

“The role of the branch is fast moving to a centre for advice, away from basic transactions,” a spokesman said.

“While the branch will still be a core part of our offering to customers, inevitably some branches will have to close.”

But Unite acting general secretary Gail Cartmail stormed: “The RBS Group is turning its back on the communities that have been the foundation of its business for generations.

“That’s bad news for our members who now have to live with the threat of redundancy — and it’s bad news for customers and businesses.”

She said the “duty” of banks to serve their local communities applied especially to those with large state-owned shareholdings.

“People like the face-to-face contact that having a physical presence in the high street provides,” she said.

“Pensioners, people with mobility issues and those without internet access are being particularly hard hit, especially in rural areas. Small businesses are also badly affected, especially those that rely on cash handing.”

She called on regulators and the government to “force” banks to keep branches open.

Campaign group Move Your Money has found that growth in bank lending to small businesses declines by a massive 63 per cent in areas that lose a branch.

In areas that lose their last branch, growth declines by 104 per cent — meaning that lending actually falls. The closures will leave 151 RBS and 856 NatWest branches open.

The company will create a smaller number of jobs in two new roles.

“Community bankers” will support customers in rural areas, while “TechXperts” will attempt to train customers in digital skills.