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Banking Hubs: Rural and Post-Industrial Communities
24 February 2026
Lead MP
Ann Davies
Caerfyrddin
PC
Responding Minister
Lucy Rigby
Tags
EmploymentTransportBusiness & TradeAgriculture & Rural Affairs
Word Count: 4153
Other Contributors: 13
At a Glance
Ann Davies raised concerns about banking hubs: rural and post-industrial communities in Westminster Hall. A government minister responded.
Key Requests to Government:
The lead MP asked the Government to accelerate the establishment of banking hubs in rural and post-industrial communities as part of their plans. She also requested an assessment of the adequacy of the cash access review process to account for the unique needs of these communities.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Access to cash and banking services is a pressing issue in rural and post-industrial communities. Ann Davies highlighted that in 2006, cash accounted for 62% of all payments in the UK, but now it accounts for around 14%, with forecasts predicting further decline. Despite this trend, cash remains central to how millions manage their money, especially in less populated areas and among vulnerable groups such as elderly people, those with disabilities, and individuals without reliable internet access or public transport. She noted that the number of bank closures disproportionately impacts rural communities, and provided examples from her constituency, including the closure of a Lloyds Bank branch in Ammanford, leaving 23,709 residents without a full-service bank branch.
Adrian Ramsay
Green
Waveney Valley
Mr. Ramsay points out that the criteria for establishing banking hubs must consider real accessibility issues in rural areas, noting an example where a market town was denied a hub despite its distance from another.
Amanda Hack
Lab
North West Leicestershire
Lloyds is abandoning my community by closing a branch in Coalville despite its high usage. We need gaps in bank provision to be filled as soon as possible with banking hubs, and these should include access to business banking.
Ben Lake
PC
Ceredigion Preseli
Community bank account holders often need access to services that currently are available only in a bank branch, but could be provided in a banking hub in the future.
David Smith
Lab
North Northumberland
In Alnwick and Berwick, there are issues with the diminution of high street banking. Only three years ago, there were three banks in Alnwick and now there are none. Regarding community banking criteria, will access to cash be a statutory right?
West Dunbartonshire
The Bank of Scotland recently announced the closure of the last bank in Alexandria, but a new banking hub opened in November 2025. The Minister agrees that this ensures crucial access to cash and face-to-face banking services for businesses and residents.
Jim Shannon
DUP
Strangford
Mr. Shannon argues that the closure of bank branches has a dramatic effect on rural life, questioning if banks should prioritise profit over people's needs.
Joe Morris
Lab
Hexham
The town of Haltwhistle is too small for a banking hub by itself, but the businesses that look to it are now forced to look elsewhere. This risks strangling the growth of economic enterprise in the west of Northumberland.
John Hayes
Con
South Holland and The Deepings
98% of MPs surveyed think there should be a banking hub wherever the last branch has closed. This shows that many groups struggle with issues in rural areas, including those with mental health difficulties.
Dwyfor Meirionnydd
In my constituency, we lost 21 out of 25 locations for vans a year ago. The Government needs to intervene to ensure that remote and left-behind communities are not further disadvantaged by financial organisations looking after their own interests.
Matt Rodda
Lab
Reading Central
In my constituency, we have faced issues such as a lack of immediate parking for elderly people to access branches. I am grateful for the Government's work on this issue.
Richard Foord
Lib Dem
Honiton and Sidmouth
The Conservative Government passed the Financial Services and Markets Act in 2023, giving the FCA powers to set up banking hubs. Does the Minister think this was a missed opportunity to prevent banks from closing high street branches?
Roz Savage
Lib Dem
South Cotswolds
Ms. Savage emphasises the importance of mobile banking hubs in her constituency, highlighting recent service suspensions and arguing that these services are essential for both individuals who prefer cash transactions and businesses needing to pay in cash.
Torcuil Crichton
Lab
Na h-Eileanan an Iar
Mr. Crichton seeks to pre-empt the hon. Lady's points about banking hubs in rural areas. Lloyds Bank decided to close the Benbecula branch; there have been two bank closures in my constituency. The danger is that we will have no banking hub because of small population parameters, and sparsely populated areas need access to banking services.
Government Response
Lucy Rigby
Government Response
It is a pleasure to serve under your chairmanship, Sir Desmond. I thank the hon. Member for Caerfyrddin (Ann Davies) for securing the debate and acknowledge the strength of feeling expressed by Members about banking hubs in rural and post-industrial areas. The most recent data from the Financial Conduct Authority shows that over nine in 10 adults banked online or used a mobile app in 2024, while around a quarter carried out banking face-to-face. I recognise the particular concerns about rural and post-industrial areas where longer travel distances and uneven digital connectivity make the loss of a bank branch especially acute. The Government have been clear that it is critical for people to have access to the services they need, which is why we pledged in our manifesto to work with the industry to get at least 350 banking hubs across the country, and more than 270 hubs have already been announced. Banking hubs provide assisted cash services through post office staff and allow customers to withdraw and deposit cash while also offering community bankers from customers' banks for face-to-face interactions. More than 12 of the 17 banking hubs in Wales are open, and we continue to explore with banks how services might be expanded and improved where there is a community need. We have held roundtables with banks to discuss ways to raise awareness of the location and services provided by banking hubs.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.