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Bank Closures Rural Areas 2025-02-24
24 February 2025
Lead MP
Simon Hoare
Debate Type
Adjournment Debate
Tags
EconomyTransport
Other Contributors: 12
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
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.
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.
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.
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.
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
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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