UP TO 265 jobs could be axed in Chester after banking giant Lloyds announced a new wave of cutbacks.

The cuts will see the closure of the entire Cheltenham & Gloucester (C&G) branch network and the restructuring of its personal loans business.

More than 1,600 full-time jobs across the UK will be affected, which angered union officials and led to dismay among workers.

The group says 110 jobs are set to go in Chester this year as it winds down a joint venture it runs with the AA.

Lloyds is also planning to move its personal loans product team to one site in London, affecting another 155 people in Chester over the next two years.

A spokeswoman said the exact number of job losses in Chester was not yet known, as people could be offered alternative employment or the chance to relocate.

Lloyds currently employs around 3,000 people in the city. The group said it was closing its network of 164 C&G branches in November, including those in Liverpool, Warrington and Chester, as it focused on building its mortgage and savings direct and intermediary businesses. Those closures will affect up to 928 full- and part-time workers.

Lloyds said the changes followed a “careful and detailed review” by the business of the group's mortgage brands. It said C&G customers would be able to manage their accounts at Lloyds TSB’s 1,800 branches.

Derek Simpson, joint general secretary of the Unite union, said the news was “nothing short of disgraceful”, adding: “This is truly a dark day for the financial services sector in this country.”