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Bank Closures and Banking Hubs 2025-06-05
05 June 2025
Lead MP
Ian Lavery
Debate Type
General Debate
Tags
EconomyTaxation
Other Contributors: 48
At a Glance
Ian Lavery raised concerns about bank closures and banking hubs 2025-06-05 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
Recognises the importance of banking facilities to local communities, expresses concern over the decline in physical branches over the past four decades. Emphasises the role of face-to-face banking for vulnerable people and its impact on small businesses through lost productivity and footfall. Notes the innovative nature of banking hubs but recognises current FCA regulations are inflexible.
Southend West and Leigh
Highlights significant issues for charities due to bank closures, mentioning local charities struggling to find places to bank cash donations.
Andy Slaughter
Lab
Hammersmith and Chiswick
Congratulates the debate's mover on securing an important debate, mentions recent post office closures in his constituency causing volatility and uncertainty for local communities.
Bernard Jenkin
Con
Harwich and North Essex
Welcomes the debate, notes that many constituencies are losing their banking facilities despite Government efforts to revive high streets. Believes proper banks should be on every high street rather than relying on post offices.
Helen Hayes
Lab
Dulwich and West Norwood
Supports the debate, mentions widespread bank closures in her constituency with poor alternatives such as poorly advertised banking hubs. Criticises banks for their cynical approach towards communities.
Harriett Baldwin
Con
West Worcestershire
Asks whether a banking hub should be provided automatically when the last bank in town closes, questioning the role of the regulator and suggesting more room for discussion.
Clive Efford
Lab
Eltham and Chislehurst
Supports the review of criteria for banking hubs to ensure they are not reliant on Nationwide. Believes criteria laid down by Government, banks, FCA and Link need to be overhauled.
Alison Griffiths
Con
Bognor Regis and Littlehampton
Asks the Government to ensure that the FCA reviews its guidelines on access for disabled and vulnerable people who are losing services. Suggests more support is needed.
Greg Smith
Con
Mid Buckinghamshire
Notes significant bank closures in his constituency, criticises banks' technical claims that other banks are nearby without considering real-world travel times and distances.
Ian Lavery
Lab
Blyth and Ashington
Mr. Lavery emphasised that banks profit significantly from branch closures, citing a 6% decrease in overhead costs in January 2020. He provided specific examples of bank profits in recent years: HSBC £19.8 billion, Barclays £6.36 billion, and NatWest £4.75 billion. Lavery also mentioned the FCA's lack of statutory powers to prevent branch closures and called for legislative changes to increase flexibility in guidance.
Harpenden and Berkhamsted
Ms. Collins thanked Mr. Lavery for his speech, highlighting local efforts to secure a banking hub despite having a Nationwide building society presence. She agreed that communities need access to a full range of banking services provided by traditional banks.
North East Fife
Ms. Chamberlain acknowledged the vulnerability of older people and those who feel ashamed about needing financial assistance, emphasising that online banking is not a solution for everyone. She urged consideration for responsible credit access for vulnerable customers.
Alec Shelbrooke
Con
Wetherby and Easingwold
Mr. Shelbrooke agreed with Mr. Lavery's comments on supermarket cash machines, mentioning a similar situation in his constituency where Morrisons' cashpoints ran out of cash.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Mr. Mundell highlighted issues with cash machines inside shops that may be open for longer but are stocked from the shop's cash received in premises, leading to situations where there is no available cash.
Esther McVey
Con
Tatton
Ms McVey highlighted the closure of over 10,000 banks across the country since 2010 and cited examples from her constituency where multiple branches have closed in towns such as Knutsford and Wilmslow. She emphasised the impact on rural areas with poor internet access and stressed the importance of face-to-face banking for confidence, security, and efficiency.
Neil Hudson
Con
Epping Forest
Dr Hudson echoed concerns over bank closures in his constituency and agreed that banks like Lloyds need to rethink their closure policies. He emphasised the importance of face-to-face banking services for many local residents.
Richard Quigley
Lab
Isle of Wight West
Mr Quigley stressed the urgency of providing reliable in-person banking services, citing a recent meeting with Link that resulted in plans for permanent hubs on his island. He highlighted concerns over financial exclusion and the impact on older residents, emphasising the importance of community-focused solutions like banking hubs.
John Whitby
Lab
Derbyshire Dales
Described the closure of bank branches in Bakewell, which was the last branch in the Peak District national park. He mentioned that after his constituency applied again with revised criteria, a banking hub was established in December. The MP also discussed the importance of cash access and detailed challenges faced by residents and businesses in accessing cash services.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Called for reassessment of criteria for free-to-use cash machines. Described the closure of Bank of Scotland branches along a 75-mile stretch without replacement facilities. The MP also expressed disappointment over community access to bank buildings after closures and highlighted issues with joined-up thinking between banks, post offices, and communities.
Jon Trickett
Lab
Normanton and Hemsworth
Noted that many branches have closed in his constituency, leaving 23 separate settlements without banking access. He highlighted difficulties with poor bus services and internet provision, impacting people's ability to use banking hubs effectively. The MP criticised the banks for abandoning communities despite their loyalty.
Helen Morgan
LD
North Shropshire
Congratulated the hon. Member for Blyth and Ashington on securing this debate, emphasising its importance in addressing the issue of banking access in rural areas.
Martin Baker
Con
North Shropshire
The closure of NatWest in Market Drayton is part of a wider trend impacting rural communities. Five market towns in North Shropshire will lose commercial banking branches, with only Whitchurch currently having an alternative provided by the opening of a banking hub. The town of Ellesmere does not qualify for a bank hub because it fails to meet Link’s criteria despite being an essential service centre for a large rural area.
Yasmin Qureshi
Lab
Bolton South and Walkden
Communities across Bolton South and Walkden have seen the impact of losing high street banks. The closures affect not only individuals who depend on face-to-face banking but also small businesses trading in cash. It is essential to review the criteria set by the Financial Conduct Authority for banking hubs, as they do not reflect real-life need.
Bradley Thomas
Con
Bromsgrove
In Bromsgrove and surrounding areas, four banks have closed in just three years. This trend has significant implications for small businesses and financially vulnerable individuals who rely on cash access daily. The criteria for banking hubs should be reviewed to better meet community needs.
Ben Goldsborough
Lab
South Norfolk
Lloyds bank will close its branch in Wymondham, South Norfolk’s last high street bank, leaving only a Nationwide building society branch. Access to cash is essential for many elderly residents and businesses due to poor internet connectivity. Innovative solutions like utilising post offices and pubs as service hubs are needed.
Ben Goldsborough
Con
South Norfolk
Noted that while access to banking is an issue in rural constituencies, it also affects urban areas due to bank closures and inadequate public transport options. Emphasised the importance of market intervention to ensure minimum universal banking services.
Jo Platt
Lab/Co-op
Leigh and Atherton
Supported her colleague's call for action, highlighting the decline of high streets due to bank closures and stressing the importance of physical bank branches in supporting local businesses and driving regional growth. She mentioned economic abuse as a significant issue and urged the Government to review the assessment process for banking hubs.
Lisa Smart
LD
Hazel Grove
Emphasised the importance of credit unions and access to responsible lending, noting that some services are not available at banking hubs. Highlighted a case in her constituency where a Nationwide branch closure had significant impacts.
Gagan Mohindra
Con
South West Hertfordshire
Called for increased flexibility for the rollout of banking hubs to ensure communities have access to frontline banking services. Highlighted examples from his constituency where a post office manager is now managing a banking hub, helping residents despite branch closures.
Naushabah Khan
Lab
Gillingham and Rainham
Stressed that the closure of bank branches affects more than just access to cash, as it strips communities of essential advice and support services. Highlighted examples from her constituency where residents struggle with online banking due to lack of digital literacy or infrastructure.
North East Fife
Acknowledged the importance of access to cash but emphasised that banking hubs should provide more services beyond just cash withdrawal and deposit. Highlighted issues with process transparency, local post office support availability, and the need for legislation addressing banking service provision.
Darren Paffey
Lab
Southampton Itchen
Emphasised the closure of multiple banks in his constituency and the impact on elderly, blind, and financially vulnerable individuals. Shared constituents' testimonials illustrating the critical need for face-to-face services.
Lewis Cocking
Con
Broxbourne
Discussed rapid bank closures across his constituency impacting a significant number of people who rely on traditional banking methods over digital alternatives, especially those with visual impairments. Argued for expanding rules to enable more banking hubs and ensuring these hubs accept cash.
Andrew Lewin
Lab
Welwyn Hatfield
Highlighted the closure of Lloyds and Halifax branches in Welwyn Garden City, adding that this is a common issue faced by many communities. Criticised the lack of action from major banks despite their public commitments.
Brecon, Radnor and Cwm Tawe
Mr. Chadwick highlighted the positive impact of a newly established banking hub in Ystradgynlais, emphasising its importance to elderly residents and small businesses who previously faced long journeys for basic services. He stressed the need for more flexible regulatory frameworks that support community applications for new hubs beyond the Government's initial commitment of 350 hubs.
Dave Robertson
Lab
Lichfield
Mr. Robertson discussed the crucial role physical banks play in regenerating high streets, citing examples from his constituency where bank closures have exacerbated economic decline. He argued for a dual approach that complements online banking with accessible face-to-face services and called on the Government to encourage more banks to re-establish themselves in town centres.
Gregory Stafford
Con
Farnham and Bordon
Mr. Stafford outlined the urgent need for permanent banking hubs in his constituency, noting that temporary solutions are insufficient given the scale of bank closures. He called for reforms to make the hub process faster, more inclusive, and better equipped to serve both individuals and small businesses with comprehensive face-to-face services.
Dan Aldridge
Lab
Weston-super-Mare
Highlights the impact of bank closures on vulnerable communities, including those with autism. Supports the Government's work on banking hubs but calls for more ambitious action to foster inclusive services.
Sarah Green
LD
Chesham and Amersham
Notes that 11 banks have closed in her constituency and pleads for a review of criteria for assessing towns for banking hubs. Calls attention to accessibility gaps, including broadband connectivity issues.
Alison Griffiths
Con
Bognor Regis and Littlehampton
Urges the need for robust and fair system of banking hubs due to recent branch closures. Highlights dependency on local branches by elderly and disabled residents, emphasising that post offices cannot meet all needs.
John Cooper
Con
Dumfries and Galloway
Points out the inadequacy of current banking hub criteria in rural areas with poor mobile coverage and broadband access. Urges lowering thresholds for hubs to better serve communities like Wigtown.
Jim Shannon
DUP
Strangford
Highlights that his constituency has lost 11 banks, both in villages and towns, stressing the need for regulation of access to banking services through legislation.
John Hayes
Con
The Deepings
Link criteria need to change due to disproportionate damage to rural areas with smaller populations. People in The Deepings, Long Sutton, and Donington cannot get access to banking services.
Jim Shannon
DUP
Strangford
Post office branches are crucial as banks close; Newtownards branch faces closure despite its importance. Post offices provide face-to-face service but must remain open for full-service provision, protecting the elderly and those uncomfortable with digital banking.
Sarah Olney
LD
Richmond Park
There is wide agreement on a banking crisis; lack of access to banking leads to social exclusion. Post offices should be maintained in constituencies. Reversing cuts to interchange fees would increase ATM provision, aiding those with poor digital connections.
Mark Garnier
Con
Wyre Forest
Banks are essential for economic investment and home mortgages. Banks need strong balance sheets; some profits should be reinvested in communities to avoid another crisis. People’s confidence in banks depends on good, wide-ranging services.
Ian Lavery
Lab
Blyth and Ashington
The debate recognises the importance of maintaining essential banking services as a foundation for public confidence. The previous Government acknowledged this through the post office network, providing free and convenient access to basic banking services via over 30 UK banks and building societies. Post Office branches currently outnumber all other banking institutions combined, accounting for more than 66% of branch-based cash access points in the UK.
Emma Reynolds
Economic Secretary to the Treasury
The Government recognise that face-to-face banking remains essential for many, particularly in rural areas and for vulnerable people. The Financial Services and Markets Act 2023 legislated to protect reasonable access to cash, giving the Financial Conduct Authority new powers. Over 220 of 350 planned banking hubs are agreed upon, with more than 160 open.
Alex Mayer
Lab
Dunstable and Leighton Buzzard
Asked for clarification on the Minister's stance regarding the need to demand that Link reviews its assessment procedure. Emphasised the importance of addressing issues with ATM reliability.
Government Response
The Government recognise the importance of face-to-face banking services, particularly for vulnerable groups and in rural areas. Through the FSMA 2023, the Financial Conduct Authority has new powers to ensure communities can withdraw and deposit cash. The industry is committed to rolling out over 350 banking hubs by the end of this Parliament.
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