Lloyds Bank is reducing the size of hundreds of its branches, it is reported by the BBC.

It will need just two people to staff the new micro branches and they will support customers using banking machines for services such as paying in.

Lloyds, which has a major centre at Barnwood, says the changes reflect the fact that more customers are using online services.

The banking group previously announced it was closing 400 of its branches around the UK, with 9,000 job losses.

Meanwhile, the Government has reduced its stake in Lloyds Banking Group to less than two per cent. Some £20.3 billion of tax payers money was poured into the bank during the 2008 financial crisis.

The Economic Secretary to the Treasury, Simon Kirby, said: "I welcome this further progress in returning Lloyds to the private sector. We have now recovered over £20 billion for the taxpayer and are very close to recovering all of the money taxpayers injected into the bank during the financial crisis.

All proceeds from the sales are used to reduce the national debt.