Banking giant Lloyds is set to close its 164 Cheltenham & Gloucester branches across the UK axing about 1,400 jobs, it was revealed today.

The mortgage specialist has 164 branches, usually based on high streets, including one in Shrewsbury town centre.

Industry sources say Lloyds is also expected to announce job cuts in other parts of its business. It is understood C&G staff have yet to be officially told about the decision.

The bank has cut almost 3,000 jobs since mid-April after its merger earlier this year with Halifax Bank of Scotland.

A spokesman for Lloyds said: “If and when we have an announcement to make, first and foremost we brief our colleagues. We will then speak to our external stakeholders.

“Cheltenham & Gloucester is an important and valuable brand for our company and it will remain so.”

The Lloyds Group has about 3,000 branches across the UK with its main brands Lloyds TSB, Halifax and Bank of Scotland.

The Unite trade union said the closure of the branches was a “disgrace”, adding that it was “appalled” that staff heard about it in the media.

“Lloyds Banking Group must take full responsibility for the devastation caused to staff who have this morning woken up to news that they could lose their jobs.

“Members who are affected by this decision have a right to hear of it in the right way, with sensitivity and sufficient detailed information to enable them to face the difficult months ahead,” said a spokesman.

Cheltenham & Gloucester, a subsidiary of the Lloyds Banking Group, specialises in mortgages and savings products.