Commons Sense

House of Commons · Adjournment Debate

Banking Services: Rural Northumberland

02 September 2024 · 2 other contributors

Opened by Joe Morris Lab Hexham

EconomyHousingTransport

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

Read the full transcript on Parliament.uk

At a glance

Joe Morris raised concerns about banking services: rural northumberland in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Concerns raised about banking deserts in Northumberland, with Hexham losing over 70% of its bank branches since 2015.
  • The closures affect young entrepreneurs and older residents, creating barriers to economic growth and access to cash.
  • Loss of Barclays in Haltwhistle impacts local businesses' transaction and cash flow management, leaving them with insecure alternatives.

How the debate unfolded

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

Opened the debate

Joe Morris Lab Hexham

Mr Speaker granted this debate to address the issue of banking deserts across Northumberland and particularly Hexham, which has lost over 70% of its bank branches since 2015. The closures impact both younger people starting businesses and older individuals struggling with access to cash, creating a barrier for economic growth in rural communities. Constituents face long journeys to reach the nearest branch, highlighting the need for mitigating measures such as banking hubs before closures occur. The loss of Barclays in Haltwhistle has affected local business operations, impacting their ability to manage transactions and cash flow efficiently. Businesses are left with no alternative but to use post offices, which is not always secure or convenient.

Other contributors (2)
  • David Smith Con North Northumberland

    The hon. Friend's constituency has been significantly impacted by bank closures and the loss of face-to-face services for constituents.

  • Ian Lavery Lab Blyth and Ashington

    The impact on businesses due to the lack of banking facilities is significant, as they lose a relationship with their branch and must travel long distances to access basic services.

Government Response

Tulip Siddiq

The Economic Secretary commended Joe Morris for securing the debate on banking deserts, highlighting that bank closures impact communities and hinder economic growth. The Government prioritise financial inclusion and are rolling out at least 350 banking hubs to provide essential services in underserved areas. Over 60 hubs have already opened, with an aim of reaching 100 by year-end. Criteria for hub locations include population size, retailers, and alternative bank branches. Communities can request LINK assessments to support their case for new hubs. The FCA's forthcoming rules will require banks to assess the impact of closures on a community’s ability to access cash before proceeding with them, ensuring that gaps in provision are addressed. The Government also commit to improving broadband connectivity through Project Gigabit and protecting the post office network.

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