Commons Sense

House of Commons · Adjournment Debate

Local Bank Branch Closures

05 September 2023 · 2 other contributors

Opened by Amy Callaghan Lab East Dunbartonshire

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Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Amy Callaghan raised concerns about local bank branch closures in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The hon. Member for East Dunbartonshire notes seven local bank closures since 2020 in her constituency, impacting vulnerable constituents.
  • The Minister acknowledges the statutory right to protect cash access under the Financial Services and Markets Act 2023.
  • The Minister cites UK Finance data indicating that only a third of UK adults use face-to-face banking, while over nine in ten use online and mobile banking methods.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Amy Callaghan Lab East Dunbartonshire

The hon. Member for East Dunbartonshire highlights the issue of local bank branch closures in her constituency, noting that seven local banks have closed since 2020, most recently Barclays in Kirkintilloch and Bank of Scotland in Bearsden. She emphasises the importance of local bank branches to vulnerable constituents who struggle with online banking and face difficulties due to increased distances to the nearest branches. The hon. Member also addresses the issue of cash deserts, particularly in Scotland, where 130 areas lack access to either a branch or an ATM within a reasonable distance. She calls for government intervention to incentivise banks to maintain high street presence.

Other contributors (2)
  • Jim Shannon DUP Strangford

    Welcomes the hon. Member’s intervention and supports her point of view on the need for local bank branches.

  • Brendan O'Hara SNP Argyll and Bute

    Supports the campaign of people in Dunoon and acknowledges the difficulties faced by constituents due to bank branch closures.

Government Response

Andrew Griffith

The Minister recognises the strength of feeling about local bank branch closures but argues that the nature of banking is changing towards digital services. He cites UK Finance data showing only a third of UK adults carrying out face-to-face banking activities in branches, with over nine in ten using online and mobile banking methods. The Minister acknowledges the statutory right to protect cash access under the Financial Services and Markets Act 2023 and supports FCA guidance on bank branch closures. He mentions alternatives such as post offices and banking hubs, noting that there are still nine post offices in East Dunbartonshire and over 11,000 across the UK. The Minister also highlights the requirement for free ATMs within a mile in urban areas and three miles in rural areas to ensure easy access to cash. He encourages MPs to work with local planning authorities to facilitate the delivery of banking hubs.

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