Proposals allowing Wales to issue banknotes celebrating famous national figures and landmarks have been defeated by Tory MPs.

Singer Dame Shirley Bassey, rock band Manic Street Preachers and the NHS's chief architect Aneurin Bevan were among those touted by MPs as candidates to feature on Welsh banknotes.

Plaid Cymru's Jonathan Edwards argued Wales should be allowed to issue notes via the Lloyds Banking Group, which holds the rights for the Bank of Wales brand.

The MP for Carmarthen East and Dinefwr said such a move would finally end the "historic anomaly" which prevents Wales having the same opportunity as Scotland and Northern Ireland to have its own distinct currency designs.

Mr Edwards suggested allowing the Welsh people to choose who should feature on the first banknotes for Wales since laws ended the issuing of such a currency in 1844.

But Treasury Minister Harriett Baldwin said the UK Government would not back the amendment to the Bank of England and Financial Services Bill.

She said: "To extend the privilege and give that commercial advantage in Wales to just this one bank as outlined in his amendment would raise competition and commercial issues for others."

Ms Baldwin said she understood the motive behind the amendment to deal with a "symbolic issue", noting the Bank of England will include symbols representing all four Home Nations on future banknotes.

The Commons voted against Mr Edwards' proposal, which was backed by Labour and SNP MPs, by 301 votes to 239, majority 62.

Moving the amendment, Mr Edwards said of the issuing of Welsh notes: "To do so would be a welcome boost to brand Wales and recognise our country as an equal and an economic entity."

He added: "Is it not fair and sensible for us in Wales to use notes that recognise our historic landmarks?"

Mr Edwards suggested Snowden as well as former prime minister David Lloyd George and first Plaid MP Gwynfor Evans, whom he labelled the "father of modern Wales".

He went on: "The Royal Mint already produces Welsh-specific coins, so my proposals raise no major issue of principle."

Shadow Treasury minister Richard Burgon agreed the Welsh people should be allowed to decide banknote designs, adding: "My own personal suggestion, for what it's worth, is it's 30 years since the foundation, formation of that great Welsh rock band the Manic Street Preachers.

"I'd love to see them celebrated on the new banknote although they may have ideological objections to that."

Mr Burgon said Port Talbot's steel industry or the mining communities of the South Wales Valleys could also be commemorated.

Dame Shirley, whose hits included Big Spender, was put forward as a potential banknote candidate by Labour's Stephen Doughty (Cardiff South and Penarth).

He told Mr Edwards: "I would like to see more women represented on banknotes whether they be Welsh or Bank of England.

"Would you think whether or not one was a big spender, a representative of my own constituency, Dame Shirley Bassey, would be an excellent person to be on a Welsh banknote?"

Mr Edwards noted he had seen Labour supporting Dame Shirley's inclusion.