Bank Closures and Banking Hubs

Bradley Thomas Excerpts

Thursday 5th June 2025 Commons Chamber

[Bradley Thomas (Bromsgrove) (Con)]

I congratulate the hon. Member for Blyth and Ashington (Ian Lavery) on securing this important debate. In a world dominated by contactless payments and banking apps, it is very easy for some people to live cash-free and seldom visit a bank, but we must not overlook the 3 million to 5 million people who still rely on cash on a daily basis. These consumers are far more likely to be digitally excluded and financially vulnerable.

I recently conducted a cash access survey in my constituency. Some 55% of respondents said that they use cash on a daily basis, and 91% believe the Government should safeguard the acceptance of cash as a valid form of payment. It is vital that access to cash and banking services is protected. It is important for those who use cash, but we must consider the resilience of the wider banking and financial system too. We have recently witnessed a major power outage at Heathrow, as well as large-scale power cuts in Iberia. We are increasingly aware of threats posed by hostile states that want to conduct cyber-attacks to disrupt our national infrastructure, so cash and local banking services must remain accessible to allow society to function in the event of any major disruption. This is a matter of national security.

In Bromsgrove and the villages, we are experiencing the effects of changes in the way that people bank. With the closure of Lloyds and Halifax, Bromsgrove high street will have lost four banks in just three years. Such banks are a lifeline for so many small businesses—particularly those run by independent entrepreneurs—as well as for local residents, who rely on banking services every single day. If we are not careful, Bromsgrove risks becoming a banking desert with an increasingly empty high street. I know that Bromsgrove is not eligible for a formal banking hub, so I call on the Minister to review the true impact of the closure of banks across the country, and to review the criteria that a community has to meet in order for a banking hub to be provided.

In the limited time I have left I want to draw attention to the further decline of high streets and the important role that banks provide in drawing people into their communities. Banks often occupy some of the most prominent, most beautiful and most significant historic buildings. Once they are vacant, they are often left empty, and they become eyesores and further symbols of the deterioration of high streets, which affects so many of the communities that we represent.

I ask the Government to review the criteria for banking hubs, and to focus on serious, long-term business rates reform that will enable high streets to thrive into the future. Collectively, as a House of Commons, we must put pressure on the banking system to ensure that cash access remains a part of our functioning economy, and that as many of our constituents as possible have access to day-to-day retail banking services.

--- Later in debate ---

[Gregory Stafford (Farnham and Bordon) (Con)]

I thank the hon. Member for Blyth and Ashington (Ian Lavery) for securing this debate.

In my constituency of Farnham and Bordon, the situation is stark. Although I welcome the fact that we have secured a temporary banking hub in The Shed, in Bordon, on the Hampshire side, it rapidly needs to have a permanent location. In Liphook, there is no banking hub, no agreed plan and no clear process for securing one. Across the border in Surrey, in Haslemere, we are fortunate to have one of the 100 national hubs up and running, but in nearby Farnham, Barclays has just gone and Santander goes next month. All this means that more than 100,000 people across my constituency have not a single bank and only one building society. Constituents are right to be concerned. Link, the UK’s main cash access body, has stated that Santander’s closure will have,

“no significant impact on the community”.

I strongly disagree; it absolutely will. This cannot continue to be a postcode lottery. Banks were once embedded in towns and communities but now they are being erased with little left behind. Banking hubs are a partial answer, but the system needs reforms. The process is slow, the criteria too narrow and the scope of services too limited. Hubs must be located centrally, open five or six days a week, accessible to those with limited mobility and reachable without a car. They should serve both individuals and small businesses and, crucially, offer face-to-face banking, not just cash points and machines.

[Bradley Thomas]

In a society where collective trust is depleting, does my hon. Friend agree that the presence of face-to-face banking services and banking customers being able to have a direct in-person relationship with real people is one step that we can all take to help rebuild collective trust in the institutions that underpin society?

[Gregory Stafford]

I entirely agree with my hon. Friend; he makes a very convincing point. When we are dealing with something as vital as personal finances, it should not be too much to demand to see a person face to face.

The legislation we rely on to manage access to banking, including the Financial Services and Markets Act, remains focused almost exclusively on access to cash, not access to banking services. That distinction matters. Depositing takings, seeking support with financial abuse and getting advice are all services that cannot be delivered by a machine.

Even when residents are confident and willing to bank online, they are often held back by something much simpler: their connection. In many parts of my constituency, mobile coverage and broadband access are so poor that digital banking is unreliable, if not impossible. The digital divide is no longer just a social challenge but a financial one too.

Older people, disabled people, rural residents and small businesses all deserve access to a banking system that works for them, not just for those who are already digitally fluent or living in better-connected areas. That means that physical services, in-person advice and real access to cash must remain part of the infrastructure of modern life.

Will the Minister work with Link, Cash Access UK and local authorities to accelerate the roll-out of banking hubs? Will she expand the remit of the Financial Services and Markets Act to protect access to full banking services, not just to cash? Finally, will she meet me to discuss how we can support the roll-out of permanent, accessible banking hubs in Liphook and Farnham? No one should be excluded from essential financial services because of their postcode, their age, or the strength of their wi-fi signal.