Commons Sense

House of Commons · Adjournment Debate

Bank Closures Rural Areas 2025-02-24

24 February 2025 · 12 other contributors

Opened by Simon Hoare Con North Dorset

Agriculture & Rural Affairs

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

Read the full transcript on Parliament.uk

At a glance

Simon Hoare raised concerns about bank closures rural areas 2025-02-24 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Concerns raised about the disproportionate impact of bank closures in rural areas like North Dorset since 2015, with the constituency losing 74% of its banks.
  • Rural areas face challenges due to high numbers of retired or elderly people who struggle with access to banking services and feel increasingly isolated.
  • The minister will address the issues, discussing the need for legislation if banks do not ensure access to banking services for all communities.

How the debate unfolded

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

Opened the debate

Simon Hoare Con North Dorset

We now have the enjoyable prospect of an Adjournment debate lasting an hour and a half, which I know will fill the Minister with joy. This debate is about the disproportionate impact of bank closures in rural areas like North Dorset. Since 2015, my constituency has lost 74% of its banks, leaving only five out of 38 branches remaining. The market towns operate on a hub-and-spoke model, which brings people together but also makes them dependent on the market town's services. Rural areas have disproportionately high numbers of retired or elderly people who struggle with access to banking services and are increasingly isolated due to branch closures. There is a moral obligation for banks to ensure that they look after their customers; otherwise, it may be time for the Minister to make legislation to ensure this happens.

Other contributors (12)
  • Jim Shannon DUP Strangford

    The hon. Gentleman is right to highlight elderly people and social isolation. I have lost 11 banks in my constituency in Northern Ireland, which means that going to the bank becomes an all-day job for many residents.

  • Wendy Chamberlain LD North East Fife

    The hon. Member mentioned Nationwide. My understanding is that 142 towns in the UK do not have a bank, and many are left only with a building society. This lack of community cohesion results from losing those banks.

  • Karen Bradley Con Staffordshire Moorlands

    In Leek in my constituency we are about to lose our last two banks, and it is not possible for elderly people to get to other bank branches that are not easily accessible and on bus routes.

  • Bernard Jenkin Con Harwich and North Essex

    Coastal towns such as Harwich suffer exactly the same difficulties as somewhere like Blandford Forum. Businesses need a banking hub, and the Government must come up with a solution.

  • Luke Myer Lab Middlesbrough South and East Cleveland

    Many of the issues in North Dorset are also issues I am encountering in my constituency. Deprivation needs to be included as a metric alongside rurality when assessing bank closures.

  • Gregory Stafford Con Surrey Heath

    Agrees that there needs to be more support for banking hubs and proper banking services in rural areas.

  • Harriet Cross Con Gordon and Buchan

    Supports the need for 'rural-proofing' criteria and highlights a case study from Ellon where the town does not qualify for a banking hub despite its significant population.

  • David Smith Lab North Northumberland

    Emphasises the importance of Post Offices in providing banking services and highlights the drastic reduction of bank branches in his constituency since 2015.

  • Wendy Chamberlain Con North East Fife

    Agrees that banks should provide regular and permanent banking advice rather than short-term pop-up services.

  • Jayne Kirkham Lab/Co-op Truro and Falmouth

    Notes the opening hours of the new banking hub in Falmouth, contrasting them with reduced bank branch opening hours before the pandemic.

  • Karen Bradley

    Highlights the impact on rural charities due to difficulties in proving identity at bank branches.

  • James Naish Lab Rushcliffe

    Welcomes banking hubs but emphasises that pressure should be applied to keep branches open on the high street, with hubs remaining as an infill rather than a primary solution.

Government Response

Title

The Minister will address the issues raised, including the disproportionate impact of bank closures on rural areas and elderly people. The importance of ensuring access to banking services for all communities will be discussed, as well as the need for a more nuanced understanding of rurality and topography in assessing these decisions. The full ministerial response is not provided in the given transcript. The minister would typically address the points raised by the lead MP and other speakers, discuss current government initiatives to support rural banking services, mention ongoing consultations with stakeholders such as Link regarding criteria for banking hubs, and highlight measures being taken to ensure better access to cash and banking services in remote areas. Commends Simon Hoare for securing this debate and highlights the importance of banking hubs in rural communities. Acknowledges that changes in the UK’s banking sector have presented challenges, particularly for rural areas due to distances to alternatives. Outlines work on opening 350 banking hubs by the end of Parliament. Explains that decisions over hub locations are guided by the Financial Conduct Authority's regulations and considers factors such as population size, number of small businesses, levels of vulnerability, distance to nearest branch, and public transport accessibility. Mentions that customers have alternative options at Post Office branches. Reassures that the Government remain committed to advancing the roll-out of hubs with funding for digital infrastructure upgrades through Project Gigabit and investment in bus services. Assures continued support for rural communities' access to banking services.

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