Bank Closures and Banking Hubs

David Chadwick Excerpts

Thursday 5th June 2025 Commons Chamber

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

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

One of the most meaningful moments I have had so far as a Member of Parliament was hearing the elderly residents of a nearby care home thank me for securing a banking hub in Ystradgynlais. That hub is now open and working, providing an essential service to residents and small businesses, many of whom were previously facing long and expensive journeys just to access basic banking services. The local response has been overwhelmingly positive, with many residents saying that the bringing back of those banking services is the first time they have seen their community restoring services in many years.

The opening of this hub did not happen by chance. I put on the record my thanks to all the staff at Link and the regulator who engaged with us throughout the process. They took the time to understand the community’s cash and banking needs and sought to find a solution. Their involvement was constructive, and I commend them for it. That is how an effective regulator can make life better for ordinary people by reining in corporate greed.

If the Government are looking for ways to win back favour, surely committing to more banking hubs must be one of them. The Government have committed to 350, but in reality, as we have heard, the country needs far more. The demand is there and the model works, but the current framework is far too restrictive. I have submitted applications for new hubs in my constituency in Pontardawe, Brecon, Presteigne and Builth Wells, each of which has a clear case. We need a system that supports those applications, instead of holding them back through outdated rules and artificial limits.

In Brecon, we have one final bank branch remaining. In Hay-on-Wye—a town blessed with a bustling high street and a number of independent businesses—not a single bank remains. Elsewhere in Radnorshire, Presteigne saw its last bank close earlier this year, and Rhayader is troubled by community bankers who do not wish to visit it. In Pontardawe, in the Swansea valley, Lloyds is due to close the final remaining branch later this year citing a lack of footfall, despite queues from the door to the counter. All the while, banks continue to report billions of pounds in annual profits and rising dividends. They say they have no option but to close these branches because of the digital transformation, yet some of them cite statistics showing that up to 50% of their customers still need physical services.

The banks have fundamentally changed their service offering. Who would now deposit their life savings with someone that offers to meet them in a car park once a week? That is what Charlie Nunn, the CEO of Lloyds Banking Group, has done to his customers in Presteigne, Brecon, Ystradgynlais and now Pontardawe. He took home a staggering £5.6 million last year, having closed more than 140 bank branches to save his company some overheads, and managing to bump up the Lloyds dividend by 13%. Does he deserve that? Does he know the misery he has caused people in doing so? Will he stop the closure of the Pontardawe branch, something that more than 500 local residents have called on him to do?