THE banking industry has published its long-awaited response to the public outcry against branch closures, leaving pioneering lobbyist Derek French of Wheathampstead bitterly disappointed.

The British Bankers' Association has announced details of a pilot scheme, which will see 10 existing branches with no rivals in their area offer paying-in and withdrawal services at no extra cost to non-customers living within a five-mile radius.

"We are very disappointed," said Mr French, who founded the Campaign for Community Banking Services four years ago. "We were led to believe that the pilot was going to be more meaningful."

His campaign, backed by organisations including The Mail On Sunday, the Federation of Small Businesses and Help the Aged, had hoped for at least 20 "neutral" banks, some of them re-opened branches.

Mr French said: "When Barclays decided to close 171 branches in April last year, some were withdrawn from sale pending the outcome of this investigation. There are plenty of closed branches around the country which are on lease and costing the banks money."

The Royal Bank of Scotland, which owns NatWest, had announced that if the pilot scheme recommended any re-openings, it would nominate its branch in Houghton Regis, near Dunstable, closed four years ago.

"Seventy per cent of small businesses visit the bank every week, and eight per cent use the bank every day," said Mr French.

"Small businesses in the retail sector have to bank daily. Voluntary organisations are also affected they often have a lot of cash to get rid of," he said. "The elderly and disabled often have difficulties with cash machines they like to deal with a human being."

Mr French is vowing to keep up the pressure by enlisting the help of the Government minister responsible for banking, Ruth Kelly.

He said: "This is an industry that lets us down time and again, and we intend to fight it. It will need government pressure or legislation."