Bank Closures and Banking Hubs

Dave Robertson Excerpts

Thursday 5th June 2025 Commons Chamber

[Dave Robertson (Lichfield) (Lab)]

I do not intend to labour too long on rehashing points that have already been made. I thank my hon. Friend the Member for Blyth and Ashington (Ian Lavery) for securing the debate and the Backbench Business Committee for scheduling it.

It is very clear that access to a physical bank is important for many people in our communities. My constituency, like those of colleagues present, has not been spared the loss of banks. In Lichfield, we have recently lost our Barclays branch, but up the road in Burntwood we have a much more difficult situation: every single bank branch has been closed for a number of years. The community has stepped up, as it so often does in Burntwood, and the post office has filled the breach. There is some access to banking services, but that is not the same as a physical branch.

As I sit and listen to the debate today, I realise that there is one word that sums up the importance of this matter—regeneration. Burntwood has a high street that is almost ready to go. Some businesses are thriving and the footfall is massive, but there is not the investment to make it kick on and become a town centre of which the whole town can be proud.

In Lichfield, where the banks are more present, there is a thriving cafe culture. Although everything is not all sunshine and rainbows in Lichfield and it never will be, we can really see the difference in the two town centres. What we are seeing here is almost an unvirtuous circle, where high streets start to struggle, footfall drops off, banks start to struggle and withdraw, footfall drops further, shops struggle more, and so on. It is a spiral to the bottom.

[Sir John Hayes]

The hon. Gentleman is becoming an hon. Friend. What happens is that the banks encourage their customers to do things online. You cannot open an account in a branch—where branches still exist—and then say that online banking is replacing face-to-face contact.

[Dave Robertson]

It is important to say that internet banking is not going away. These two ideas—face-to-face banking and internet banking—should be two sides of the same coin. All our high street banks should recognise that they have a responsibility to both ways of working. I prefer to bank online because I am busy and spend half my life on trains, but there are people who do not have that luxury, as they are technologically reluctant to engage. I hear many people ask the Government, “What can we do to get more banking hubs? What can we do to encourage more physical banks?” That is something that I would support, particularly for towns such as Burntwood, where bringing those banks back could be that spark of regeneration—the thing that starts to reverse that unvirtuous circle, so that it becomes a virtuous circle, where those banks are present and they drive footfall: it is easier to get cash, easier for businesses to bank there and easier for the high street to come back.

We all know that the high street is the physical representation of how people feel the economy is going. One reason people are so worried about the economy is that our high streets have been failing for decades. Governments have not supported high streets for far too long, and I am proud that this Government are saying that they will now do so. Getting banks back on to the high street, where they belong, can be that first step for towns such as Burntwood and the others that we have heard about in today’s debate.