NATWEST – the UK's largest retail and commercial bank – is pulling out of two West Somerset communities.

The company announced this week that its branches in Williton and Dulverton will close on September 8.

But the decision will leave Dulverton without any bank, with the nearest facilities for residents and businesses a 26-mile round trip to Tiverton or 34 miles to Minehead.

And a petition against the closure has already been launched in the Exmoor town.

Ian Johnson, owner of the Lion Hotel, said his business would be badly affected by the NatWest withdrawal.

"I use the branch on a daily basis and I think all but one business in the town also bank there," he said.

"I'm in there every day and I also use the night safe facility.

"If this goes ahead it will be another nail in the coffin of a small town.

"Dulverton has an excellent range of businesses – almost everything you need – and lots of people come here to use the shops and other facilities.

"But they also come because there is a bank and if we lose that, they will probably go somewhere else, which will have a knock-on effect on trade across the town."

NatWest said figures showed that transactions at the Dulverton branch had dropped by 14 per cent since 2011, with only 56 customers using it on a regular weekly basis – and 20 of those already using other branches in the area.

But the statistics were described as "hogwash" by Mr Johnson.

NatWest also said it had reached an agreement with the Post Office so customers in both Williton and Dulverton could check their balance, deposit and withdraw funds and business customers could get coinage.

It said there was one free to use ATM within half a mile of the Dulverton branch and three in Williton.

And it has pledged to introduce a mobile branch service to both communities and liaise with customers and local people on the best day and time to visit.

But Mr Johnson said he was not happy with the alternatives offered.

"With the best will in the world, Dulverton Post Office is quite small, there are frequently queues and this additional work is going to infringe on its other customers.

"The town is not happy about this and we are definitely going to fight it."

Local West Somerset Council ward member Cllr Keith Ross also voiced his concern.

"Dulverton will be bank-less if this goes ahead and that will have a huge affect on the town," he said.

"Having a bank acts as an attractor and brings people in - this closure will be a great loss to the commercial activity of the town."

The planned closure was also greeted with dismay in Williton, where transactions are said to have fallen by 22 per cent over the last three years.

NatWest said just 44 customers now use the branch on a regular weekly basis and more than half – 24 – already use other branches.

The closure will leave the village, which serves a wide surrounding area, with just one bank, Lloyds.

But Williton Parish Council vice chairman Cllr Bill Vaughan said if a planned new supermarket went ahead, Lloyds would have to leave its current rented base because the building forms part of the development scheme.

"Lloyds has made it clear that it probably won't relocate in the village so we could be left with no bank at all," he said.

"I am totally shocked by NatWest's decision and it will be a devastating blow to the community, making it difficult for both businesses and residents."

In a statement, NatWest said it would be writing to all its customers who used both branches and liaising with local businesses and the wider community between now and the closure date to ensure everyone was aware of the alternative ways of accessing banking.

It said customers were increasingly using alternative ways of banking, including by phone, in the Post Office and through mobile and online services.

"The decision to close a branch is never taken lightly but we have to respond to these changes," said a spokesman.

"When we make any decision to close a branch, it is based on a wide range of factors, including branch usage and the alternative ways our customers can bank with us in the area."

No details have been given of job losses but three people are currently employed in the Dulverton branch and four in Williton.

The spokesman said NatWest could not comment on staff's individual circumstances as they were currently being consulted on their options.

"However, we do always aim to redeploy staff to nearby branches where possible and to keep compulsory redundancies to a minimum."