Commons Sense

House of Commons · Ministers' Questions

Banking Services: Access

Tuesday 19 December 2023 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • More than 5,000 bank branches have closed since 2015.
  • The Minister agrees the roll-out of shared banking hubs should be accelerated.
  • The Minister is willing to meet to discuss specific business problems regarding bank account access.

Topics (select to filter)

Questions & Answers

Q1 Jeff Smith Lab Manchester Withington
Economy
Context

Since 2015, more than 5,000 bank branches have closed and the Lloyds branch in Withington village is set to close by year-end, leaving Withouting without a bank branch.

Question

More than 5,000 bank branches have closed since 2015. The Lloyds bank in Withington village will join these closures, leaving Withington without a bank branch. By the end of the year, only 30 shared banking hubs are expected to be operational. Does the Minister think that pace and scale of roll-out is good enough?

Answer from Bim Afolami

Decisions on branch openings or closures are commercial ones, but we have legislated to protect access for cash. The Financial Conduct Authority's latest guidance was published last week. In relation to shared banking hubs, the pace at which they are rolled out should indeed be increased.

Partly answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Jeff Smith Lab Manchester Withington
Business Compliance
Context

There is a problem with businesses being debanked, similar to individual customers facing difficulties accessing banking services.

Question

What will the Government do to stop businesses from being debanked in the same manner as individuals?

Answer from Bim Afolami

I am not sure I accept my hon. Friend's characterisation of the banking industry, but I am happy to meet him and discuss specific business problems regarding access to bank accounts.

Not addressed: Specific measures to prevent debanking businesses

How: Characterisation Of The Banking Industry

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Philip Davies Con
Economy Employment Business & Trade
Context

Since 2015, nearly 6,000 bank branches have closed and only 30 banking hubs are fully operational. This has led to financial exclusion for many people.

Question

Before I ask my question, I want to convey the apologies of the shadow Chancellor who is delivering a eulogy at Alistair Darling's funeral today. A dedicated public servant respected across both Houses, he responded with integrity to the global financial crisis. Sadly, nearly 6,000 bank branches have closed since 2015 and only 30 banking hubs are up and running. That leaves countless people financially excluded and affects many small businesses. I ask the Minister once again: will he accelerate the roll-out of banking hubs properly?

Answer from Bim Afolami

I agree with hon. Lady's words about Lord Darling and echo them. On bank branches, it is important that Government does not decide when a branch opens or closes but we legislate for access to cash and should speed up the roll-out of banking hubs.

Partly answered

Not addressed: Specific timeline or actions for acceleration

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Tulip Siddiq Lab Hampstead and Highgate
Business & Trade
Context

The Labour party has pledged to guarantee face-to-face banking in every community, which was welcomed by Cash Access UK.

Question

If the Minister is serious about protecting the future of the great British high street, will he back Labour's pledge to guarantee face-to-face banking in every community and give the FCA the powers it needs to roll out hundreds of banking hubs across the country?

Answer from Bim Afolami

As hon. Lady knows, industry leads the roll-out of banking hubs. We are supporting it to speed up as much as possible. I have not seen the Labour pledge—I suspect that I will not support it—but it is important that the industry hears views and we speed up the roll-out in communities.

Partly answered

Not addressed: Support for Labour's pledge

How: Not Seeing The Labour Pledge

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)