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Banking Services: Rural Northumberland
02 September 2024
Lead MP
Joe Morris
Debate Type
Adjournment Debate
Tags
Economy
Other Contributors: 2
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.
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
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.
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
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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Assessment & feedback
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