Newcastle Building Society is blaming falling customer numbers for the closures which take place in December.

A spokesman said the decision had been a "difficult" one and promised the company would do all it could to save jobs and relocate workers.

He also said money would be invested in the remaining 33 branches.

Robert Hollinshead, chief executive officer of Newcastle Building Society, said: "Announcing the closure of a number of branches across the country has been a difficult decision, and we regret deeply any inconvenience to customers.

'Competitive advantage'

"However, the business reasons for the branch closures are compelling. "I know some customers will be upset at this move, but it is best for the society as a whole.

"The society will be concentrating on branches in its North East heartland where usage is high and the brand offers a competitive advantage."

There are four branches earmarked for closure in Scotland including in Edinburgh, Paisley, Ayr and Falkirk.

The rest are in Manchester, Workington, Preston, Leeds, Bradford, Hull, Huddersfield, Leicester, Peterborough, Newton Stewart, Kendal, Berwick, Sheffield, Nottingham and Doncaster.

The society reported strong financial results for 2004 with a growth in total assets of 6.36% to �3.27bn.

But falling customer numbers has meant that in affected branches only carry out an average of 39 transactions a week.

Regional officer for the Amicus union, Frank Needham, said: "We naturally regret that the Society has come to this conclusion but understands the economic rationale.

"We have assurances from the chief executive that there will be no further branch closures."