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Face-to-Face Banking: Rural Areas
01 September 2026
Lead MP
Caroline Voaden
Responding Minister
Lucy Rigby
Tags
Crime & Law EnforcementEconomyTransportBusiness & TradeAgriculture & Rural AffairsMental HealthLocal Government
Word Count: 14331
Other Contributors: 33
At a Glance
Caroline Voaden raised concerns about face-to-face banking: rural areas in Westminster Hall. A government minister responded.
Key Requests to Government:
The Labour Government is urged to address the issue urgently, expand the rules for granting banking hubs, and amend the Financial Services and Markets Bill to protect wider banking services, not just access to cash. The Government is also called upon to adopt a Liberal Democrat amendment in the House of Lords to consider local community needs for essential in-person banking services when making regulations.
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
Banking services in rural areas have been severely impacted by branch closures. Last year, Lloyds, despite reporting a £6.7 billion pre-tax profit, shut 218 branches and announced plans to close 95 more. This has left 64% of branches closed since 2015, with only one branch remaining in Caroline Voaden's constituency. Poor internet, non-existent public transport, and a high elderly population make the closure of local banks particularly problematic. In her constituency, the only remaining branch is under threat, and she cites the case of Totnes, where residents face major inconveniences due to the lack of nearby banking services.
Adam Dance
intervention
Asked Lizzi Collinge if she agrees that all banking hubs should have fraud-trained staff.
Adrian Ramsay
Ind
Harwich and North Essex
In Harleston, there is a temporary banking hub, but securing a permanent location is taking time. Halesworth lost its bank and post office, and Eye has no bank branches. Bungay, once with four bank branches, now has none, and Link's criteria for banking hubs do not support this community despite a clear need for face-to-face services. The speaker urged the Minister to consider updating assessment criteria and reducing bureaucratic obstacles.
Alan Mak
Con
Havant
The hon. Member supports the previous Government's legislation to protect access to cash but recognises the need for legislation to ensure access to face-to-face banking. He calls on the Minister to support the In-Person Banking Services Bill to deliver more banking hubs.
The hon. Member notes similarities between Coalville and Totnes and agrees that while banking hubs are important, they do not provide the necessary business banking services. She advocates for expanding the theme of banking hubs to include business support.
Aphra Brandreth
Lab
Cheadle
In Aphra Brandreth's constituency, there is not a single bank branch, and the lack of public transport, poor broadband, and unreliable mobile coverage compound the issue. She emphasized that small businesses still handle significant amounts of cash, and the loss of face-to-face banking services poses social and economic challenges.
The hon. Member describes her community's experience in applying for a banking hub in Holywell and emphasises the importance of access to cash for local people and businesses. She agrees that rural and semi-rural towns should be recognised in the review's outcomes when it is published in October.
Charlotte Cane
Con
South East Cambridgeshire
Barclays has closed branches in Ely and Newmarket, impacting local residents, especially farmers. Community groups struggle with online banking due to requirements for two signatories, and there are issues with post offices refusing Scottish notes. Charlotte Cane calls for Link to widen its remit to cover a wider range of banking services.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Mr Mundell noted that Cumberland building society will keep all branches open in Dumfriesshire, Clydesdale and Tweeddale, including those in Dumfries, Lockerbie, Langholm, Annan and Gretna. He highlighted the closure of all Lloyds and Bank of Scotland branches in his constituency and the impending closure of the NatWest branch in Biggar. He raised concerns about poor mobile reception and the lack of commitment to a free-to-access cash machine in Moffat, despite Link's rules-based approach. My constituent lacks adequate mobile service to use banking apps, preventing them from accessing essential services.
David Reed
Con
Stoke-on-Trent North
He detailed the challenges in his constituency of Budleigh, where multiple bank closures have left residents without access to cash, particularly affecting elderly and tourism-dependent areas, and called for a reassessment of criteria for banking hubs.
The hon. Member highlights the reliance of small and medium-sized enterprises in Bridport on cash deposits and withdrawals. He cites an example of Groves Nurseries and calls for a solution to keep businesses operational without the need to travel to the nearest town for banking services.
Gagan Mohindra
Con
Redditch
In my constituency, 89% of banks have closed in the last 10 years, and Barclays is withdrawing its banking van. This withdrawal contributes to the lack of face-to-face banking for constituents, and it is frustrating that banks need to do better.
Redcar
Graham Leadbitter discussed the significant distances rural communities must travel to access bank branches, highlighting the importance of face-to-face contact for those seeking advice or reassurance during critical life events such as setting up a business or managing bereavement.
Graham Stuart
Con
Beverley and Holderness
Congratulated the lead MP on the debate's timing and praised the Conservative Government for recognising the need for cash and legislating for it. Highlighted the importance of face-to-face banking and the recent resolution to allow Lloyds customers to deposit cheques at post offices and banking hubs. Encouraged the Minister to ensure issues raised are resolved satisfactorily. Banking hubs originated from an industry response led by NatWest executives. Mr Stuart suggests presenting the Lloyd review information to banking groups to give them a chance to respond and provide solutions, aiming to avoid a more heavy-handed governmental approach.
Gregory Campbell
DUP
East Londonderry
The hon. Member agrees that the scale of bank closures is significant and that while the roll-out of banking hubs is welcome, it is not enough to meet the demand in rural areas such as his and the hon. Member's. He calls for an increase in the number of banking hubs.
Jayne Kirkham
Lab
St Ives
Lloyds closed its last branch in Falmouth, leaving a temporary banking hub in the town council offices. Jayne Kirkham supports the Government's commitment to increase the number of banking hubs but expresses concern about finding more permanent homes for them. She also discusses the Post Office's franchise model and its vulnerability to high street closures.
Jim Shannon
DUP
Strangford
Expressed concern about the impact of bank closures on vulnerable individuals in rural communities. Emphasised the importance of face-to-face banking for social contact and basic financial services, particularly for older people and those with disabilities. Called for better service standards from main street banks. The hon. Lady agrees that there is something immoral about banks making exorbitant profits while closing branches and penalising their customers.
Joe Morris
Con
Northeast Fylde
Joe Morris focused on the lack of banking services in Haltwhistle, a town in his constituency. He noted the town's need for additional support for young entrepreneurs and the challenges posed by the lack of cash access for the elderly population. He invited the Minister to meet with Haltwhistle businesses to discuss better support for rural businesses through improved banking provision.
Jonathan Davies
Lab
Mid Derbyshire
Mid Derbyshire has no banks left, creating frustration for local people and businesses. A banking hub in Belper reports over 1,500 customer interactions a week and residents consider it a lifeline. There are substantial places like Allestree and Spondon unserved by in-person banking. Jonathan Davies has written to Link for a review of access to cash in these areas.
Mr Pearce welcomed the establishment of banking hubs in Glossop and Buxton, secured by Link, but noted that the story is very different across his constituency where there is limited access to face-to-face banking services. He emphasized the importance of face-to-face banking for vulnerable groups and encouraged the Government to consider changing the rules applying to Link to move away from access to cash alone and towards face-to-face services.
Ms Ingham intervened to point out the interconnecting complex issues faced by rural communities when accessing proper local transport, suggesting that these factors need to be considered when making recommendations regarding banking access.
Lizzi Collinge
Con
Morecambe and Lunesdale
There has been a decline in bank branches in the UK, with closures in Sedbergh and Kirkby Lonsdale. Face-to-face services are crucial for vulnerable people and those dealing with grief, offering protection against fraud and digital exclusion. Rural areas face additional challenges due to poor broadband access and lack of reliable banking services.
Mark Garnier
Con
Wyre Forest
Mr Garnier highlighted the rapid evolution of banking services, noting that while 88% of adults now use online banking, many still rely on face-to-face services, especially vulnerable individuals and local businesses. He cited data showing that 6,871 bank branches have closed since 2015, leaving 56 constituencies without a single bank branch and 101 with only one. He also pointed out that 1.3 million adults in the UK are digitally excluded, and local businesses often require frequent face-to-face banking interactions. He mentioned the closure of HSBC's last bank in Bewdley, noting the importance of local branch managers in understanding local economic opportunities and the current lengthy approval times for business loans. He raised concerns about the lack of local banking services leading to unregulated alternatives and the role of banks as businesses needing to make commercial decisions. He discussed the positive steps taken by the Government to retain vital banking services, including free access through post offices and the commitment to 350 new banking hubs by 2030.
Carrick, Cumnock and Doon Valley
Patricia Ferguson highlighted that Scotland's population is older and has poor internet access, with three in four bank branches closing in the last decade. She suggested that the Government's review should provide a clear definition of reasonable access to in-person banking services, a minimum service level, and further investment in the banking hubs model.
Perran Moon
Lab
Camborne and Redruth
He expressed concern over the digital divide in remote coastal constituencies, noting that 85% of bank branches have closed in his constituency and urging the government to prioritize digital connectivity and permanent banking provision in rural areas.
Peter Prinsley
Con
Bury St Edmunds
He highlighted the difficulties faced by elderly residents in rural Suffolk when accessing banking services, emphasizing the need for proper consideration of rural communities when deciding on the location of banking hubs.
The hon. Member's constituency is large with an elderly population and poor transport links. She agrees that increasing face-to-face banking services, especially in large constituencies, is essential for constituents who need to travel long distances to access banking services.
Mr Foord highlighted the impact of bank branch closures on vulnerable individuals, citing examples of an adult with significant learning difficulties and a constituent in her late 70s who struggled with banking hubs. He noted Lloyds' closure of 218 branches last year and its plan to close 95 more while reporting £6.7 billion of pre-tax profits, describing this as an outrage and calling for more action from the Government.
Sarah Dyke
LD
Glastonbury and Somerton
The decline in face-to-face banking services is felt acutely in rural areas, with 33% of people living within three miles of a bank branch compared to 93% in urban areas. Sarah Dyke highlighted the closure of branches and its impact on small businesses and local charities, emphasizing the need for a fair banking Act and a national financial inclusion strategy. She also raised concerns about digital exclusion, noting that 1.7 million households lack broadband or mobile internet, and 5 million employed adults cannot complete essential digital tasks. The post office network is crucial, but without adequate investment, it cannot replace bank branches. She urged the Minister to commit to rural-proofing the post office network and to bring forward a national financial inclusion strategy.
Steffan Aquarone
Con
North Norfolk
Steffan Aquarone highlighted the campaign to secure banking services in North Norfolk, noting the reliance on physical banking in rural areas. He cited a constituent who felt anxious about online banking and urged banks to provide reassurance. He requested that the government ensure the access to banking services review would make a meaningful difference to rural communities.
In South Shropshire, only half of the constituents have high-speed internet, making face-to-face banking essential. He cites examples from Bridgnorth, Church Stretton, and Ludlow, urging the Government to take into account the digital divide in remote areas.
Terry Jermy
Con
North Norfolk
Thetford lost its two town centre banks and post office, leading to reduced footfall and sales. A temporary banking hub was introduced, but it lacks Saturday banking access and an external ATM. The speaker criticised the lack of like-for-like services and the delay in setting a date for a permanent site to open, highlighting the need for better service replacements when branch closures occur.
Torcuil Crichton
SNP
Ross, Skye and Lochaber
Torcuil Crichton mentioned the closure of Bank of Scotland branches in his constituency, affecting the Western Isles and contributing to the depopulation crisis. He welcomed the banking services review but stressed the need for flexibility to accommodate rural and island areas. Torcuil Crichton highlights that island communities like Uist do not fit the parameters for banking hubs, as the population of Uist is half the size needed for a banking hub. He asks the Minister to consider island-specific solutions in the roll-out of new banking hubs.
West Worcestershire
Wendy Chamberlain highlights the frustration of reduced bank branch hours, particularly for business customers. She also emphasizes the importance of improving financial literacy and addressing rural transport issues. She mentions a constituent who had to use two buses, one of which was not accessible, to reach a bank. One of the problems with the Link criteria is that towns are classed as urban by the Office for National Statistics, even though they are servicing rural communities. This mismatch means that some hubs are being missed out.
Government Response
Lucy Rigby
Government Response
It is a pleasure to serve with you in the Chair, Mr Wishart. I am very grateful to the hon. Member for South Devon (Caroline Voaden) for securing this debate. I recognise that she has been a consistent advocate for her constituency on this matter. Access to banking attracts considerable interest from across the House, given the number of hon. Members who have attended today. I shall endeavour to respond to all the points that have been raised today, especially the practical and personal circumstances shared by Members. In rural communities, the loss of a branch can make everyday banking much harder. Around 3.3 million current account holders did not bank online or through a mobile app in 2024, and branch closures can have a significant impact on communities, especially where transport links are limited. The Financial Services and Markets Act 2023 protects access to cash, but access to banking services is currently not. The Government announced an independent review into access to banking services chaired by Richard Lloyd, which will assess whether changes in access to in-person banking services are causing detriment. The review has been gathering evidence from consumers, businesses, charities, community organisations, local authorities and industry right across the UK. The Financial Services and Markets Bill includes a power that will allow the Government to take action to protect access to banking services. The Government's review and the Bill will enable the Government to respond swiftly and proportionately to the results and evidence from the review. The Government's commitment is further reflected in our support for the roll-out of 350 banking hubs by the end of this Parliament. More than 280 banking hubs have been announced, and 240 are already open. Customers can now get help not only with account opening and changes of address, complaints and powers of attorney, but with things such as bereavement support and concerns about fraud and scams. Decisions about the location of banking hubs are made independently by Link, following an access to cash assessment. Link assesses a range of criteria and factors, including population size, vulnerability, transport links, the local retail environment and post office facilities.
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Assessment & feedback
Summary accuracy
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.