A council has agreed to purchase £250,000 worth of shares in a new community bank which could open branches in Lancaster and Morecambe.

It comes as North West Mutual announced where it planned to open its first branches in Lancashire.

Preston City Council has had £1m earmarked to invest in the launch of the venture for the past six years – but this is the first time it will financially support the project.

The authority's leadership says it wants to provide residents with an alternative to large-scale banks, but opposition politicians have condemned the commitment of taxpayers' money to the project with, they say, no guarantee of getting it back.

The North West Mutual aims to be up and running next year - but should Preston City Council cash be helping to get it going? (image: North West Mutual)

placeholder image — The North West Mutual aims to be up and running next year - but should Preston City Council cash be helping to get it going? (image: North West Mutual)

The North West Mutual concept revolves around creating an “ethical” customer-owned bank that provides accounts, loans and other services only to individuals and businesses based in the region it will serve – the North West of England.

The aim is to strengthen the local economy by “recycling” an estimated £900m of money within it – rather than allowing the cash to leak out to other parts of the country.

The organisation is planning to apply for a banking licence later this year and wants to open its first branches by the end of 2026, with a full rollout planned by spring 2027.

The bank is promising to offer what it describes as a “bricks, clicks and flicks” model – combining traditional high-street outlets with online banking – and it has now revealed the scale of its proposed branch network.

Sixteen fully-staffed banks are proposed for Lancashire – in Preston, Chorley, Leyland, Skelmersdale, Garstang, Lytham St Annes, Fleetwood, Blackpool, Lancaster, Morecambe, Clitheroe,

Blackburn, Burnley, Accrington, Rawtenstall and Nelson.

They are amongst more than 60 possible bases being eyed across the region, along with a head office at a yet-to-be-disclosed location, which it is intended will open this summer.

North West Mutual chief executive Dave Burke said of the branch plans: “Our aim is to provide access to as many people and businesses in the North West as possible, with 95 percent of residents

and small and medium-sized businesses within a 30-minute drive to a branch.

“Whilst we have specific locations in mind to achieve this, we also want to listen to the people and businesses of the region and welcome thoughts and suggestions on branch locations.”