A Labour candidate has slammed the government for leaving Carmarthen at “risk of becoming a banking desert.”

Martha O’Neil, who is standing to become the MP for the new Caerfyrddin constituency at the next general election, believes that Conservative leadership is responsible for the lack of local banks for small businesses and residents.

According to a Labour analysis, since 2020, 385 towns have seen their last bank branch close or announce they will be closing.

Ms O'Neil said: “The Conservatives have once again failed to deliver the local services people depend on and have left Carmarthen at risk of becoming a banking desert.  

“I know that many people in Carmarthen depend on having a local bank, whether that’s to support their small business or manage their personal finances.

“Labour’s plan to roll out banking hubs will guarantee communities have face-to-face banking services, helping to restore pride in our high streets.”

However, Labour’s comments have been refuted by Conservative candidate Simon Hart.

He said: “If Labour wants to breathe new life into Britain’s highstreets, perhaps they ought to start by having a word with their colleagues in the Welsh government. Welsh Labour set the highest business rates in the UK, leaving small businesses here struggling to survive and shops vacant. 

"As a Carmarthenshire MP I have strongly supported Carmarthenshire County Council’s levelling up bids which have secured £36m in funding including the £19.9m Carmarthen Hwb and the £16.7m Tywi Valley Cycle Path, both of which are designed to drive business and tourism.

“There is no doubt that bank closures across west Wales are not good news for local businesses – or for some of our most vulnerable residents – and I am fully supportive of the cross-party campaign to make it easier to set up banking hubs.

“However, it is ultimately down to the Financial Conduct Authority and Link to decide where there is greatest need based on rules they have agreed with the banks.”

Meanwhile, Plaid Cymru MS Cefin Campbell believes the Welsh Labour government is still not doing enough to save local banks.

He said: “There’s no denying Carmarthenshire’s high streets have endured significant banking closures over the past decade – leaving customers and small businesses high and dry.

“Time after time in the Senedd, I have challenged the Welsh Labour Government to act to plug this gap left by the banks – in particular pressing for the roll out of their key commitment to deliver a Community Bank for Wales (Banc Cambria).

“Sadly, we have seen this commitment kicked into the long grass by the Labour government with purposeful action to tackle the banking crisis scarce.”