The petition of residents of the constituency of St Ives,
Declares that the decision by Lloyd’s bank to close its Penzance branch will have a severe and detrimental impact on older and disabled people, local businesses and on the digitally excluded; further declares that Lloyd’s has been established at the iconic Market House in the centre of the town for one hundred years and local people have appreciated the work of the staff and the service provided; and further declares that banking services should not be limited to being accessed electronically, by telephone, at Post Office counters and through the limited services and hours of Banking Hubs.
The petitioners therefore request that the House of Commons urge the Government to bring forward measures to ensure a network of accessible full-time banks throughout the UK and in every market town, and to call on Lloyd’s to keep its Penzance branch open.
And the petitioners remain, etc.—[Presented by Andrew George, Official Report, 10 December 2025; Vol. 777, c. 448.]
[P003148]
Observations from the Economic Secretary to the Treasury (Lucy Rigby):
The Government thank the hon. Member for St Ives (Andrew George MP) for submitting the petition on behalf of his constituents regarding the closure of the Lloyds branch in Penzance and the request for the Government to ensure a network of accessible full-time banks in every market town. The Government recognise the role of Lloyds at Market House and the importance of banking services to Penzance’s community.
The Government appreciate the hon. Member’s work to highlight the banking needs of older and disabled people, local businesses and the digitally excluded. Although decisions on branch closures are for banks, the Government are committed to ensuring access to banking services and cash.
Banking is changing, with many customers benefiting from the convenience and flexibility of managing their finances remotely. However, the Government understand the importance of face-to-face banking to communities and high streets, and are committed to supporting sufficient access for customers. This is why the Government are working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 200 hubs are open and delivering vital cash and in-person banking services to businesses and individuals, and over 240 have been recommended by Link, many of them in market towns throughout the UK.
Banking hubs are a voluntary service, developed by the financial services sector, in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023. Their roll-out is overseen by Cash Access UK, a not-for-profit company set up and funded by the banks for the purpose of co-ordinating banking hub delivery.
Banking hubs provide the opportunity for different banks to operate in shared premises, and although this means that different banks will offer community bankers on different days of the week, the Government are working with banks, UK Finance and Cash Access UK to develop community liaison officer, who can act as a consistent point of contact for customers whenever the banking hub is open. Link assessed local provision and did not recommend a hub at this time, given the remaining branches in Penzance. The nearest banking hub to Penzance is a 20-minute drive away, in Hayle, which has a Lloyds community banker available on Tuesdays.
Regarding the specific closure of the Lloyds branch in Penzance, Financial Conduct Authority guidance expects firms to consider carefully the impact of planned branch closures on their customers’ everyday banking and cash access needs, and to put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.
For example, the Government understand that Lloyds will be offering a community banker service at St John’s Hall in Penzance on alternate Fridays from 30 January. This will enable customers who rely on face-to-face banking to get support with their account. Services offered by the community banker include help with card and pin problems, viewing and ordering statements, payments and transfers, closing an account, registering a death or adding a third party to the account, fraud support and basic financial guidance. The community banker can also provide support with online and telephone banking.
There are several other banks with branches remaining in Penzance. Hence, if face-to-face access is a priority for them, the hon. Member’s constituents may wish to consider switching to an alternative provider using CASS—the current account switch service. The switch service is free to use, comes with a guarantee to protect customers from financial loss if something goes wrong, and redirects any payments mistakenly sent to the old account, providing further assurance for customers. This means that customers are more able than ever to hold their banks or building society to account by voting with their feet, and that firms are incentivised to work hard to retain their existing customers and attract new ones. More information about CASS is available at:
www.currentaccountswitch.co.uk
Everyday in-person banking services can also be accessed via the post office. The post office banking framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at post office branches across the UK.
Finally, the Government are also working with industry through our financial inclusion strategy to improve wider barriers to access to banking and digital inclusion. This includes launching an industry-led inclusive design working group to consider how to make products more accessible and ensure that they meet the different needs of consumers. The strategy also notes that the Government are tackling the issue of digital exclusion more widely through our digital inclusion action plan, which sets out a focus on boosting digital skills and confidence, and widening access to devices and connectivity. In recognition of this close link between digital and financial inclusion, HM Treasury is represented by the Economic Secretary at the digital inclusion ministerial group, which meets quarterly to monitor work to date and identify opportunities for further progress.
The Government will continue to monitor access to banking services and work with regulators and industry to ensure that communities such as Penzance are supported.