House of Commons · Westminster Hall
26 February 2025 · 11 other contributors · 4,111 words
Opened by Ian Lavery Lab Blyth and Ashington
Responding minister: James Murray
Summarised by AI from the official record, so it can contain mistakes.
Ian Lavery raised concerns about high street bank closures in Westminster Hall. A government minister responded.
Key points
Key requests to Government
There is an urgent need to address the inflexibility in regulations that prevent banking hubs from being established where needed. The criteria for establishing these hubs must be changed to ensure every community has access to banking facilities.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The number of high street bank branches has declined from over 21,000 in 1986 to fewer than 5,000 at the beginning of 2025. This decline poses a serious risk of financial exclusion for vulnerable groups such as the elderly and disabled individuals who struggle with online access. In Blyth and Ashington constituency alone, there are 3,420 people living with sight loss.
Hume raises concerns about the closure of branches in her constituency, emphasizing that vulnerable residents rely on local facilities for essential services.
Questioned whether Link's criteria are meeting community needs and if they should be changed to better align with the Government’s target of 350 banking hubs.
Chowns echoes Lavery’s call for reassessment of Link's criteria, highlighting a case in Kington where post offices could serve as banking hubs but are excluded due to strict rules.
To solve the issue of bank closures, there should be a condition that banks need to serve all customers and remain on high streets as part of their licence requirements.
Towns in Stoke-on-Trent face no banking facilities soon, with Link’s assessment considering an hour's bus journey and return cost acceptable. This needs to change for every town to access a hub or high street facility. Pointed out the importance of free access to cash, highlighting that some communities face high fees for withdrawing money.
Asked about the assessment criteria used by Link in remote areas like Aviemore, suggesting a need for common sense when assessing banking needs.
Discussed financial and transport barriers to accessing banking services and emphasised the need for infrastructure around banking hubs.
Athwal agrees with the importance of local banks providing essential services beyond profit-making and highlights a case in his constituency where residents face long travel times for banking.
In Strangford constituency, 11 banks have been lost and the idea of banking hubs needs urgency in implementation. Post offices can act as a back-up but their closures add to the issue.
Morris supports Lavery's concerns about rural communities losing access to banking facilities due to branch closures and the need for flexible criteria that consider local needs.
We talked a lot about some of the issues with accessing banking services and banking hubs when they are open. It is important to note that in the autumn Budget, we announced £1 billion of investment in support of bus services, which will be crucial in connecting rural areas and small towns and helping people to get to their nearest banking services.
Government Response
James MurrayThe Exchequer Secretary to the Treasury
Murray acknowledges the widespread concern over banking service closures and supports a review of criteria to better serve communities. He commits to considering demographics, transport links, and local factors when assessing needs for banking hubs. Discussed the roll-out of digital infrastructure upgrades, confirmed plans for 350 banking hubs by the end of Parliament, and emphasised that any changes to Link's assessment criteria are a matter for Link, the financial services sector, and the FCA.