Bank Closures and Banking Hubs

John Cooper Excerpts

Thursday 5th June 2025 Commons Chamber

[John Cooper (Dumfries and Galloway) (Con)]

At the risk of disappointing the hon. Member for Blyth and Ashington (Ian Lavery), I rise not entirely to criticise the banks, which have done tremendous work on apps and the like, and many people—not all of them spring chickens—make great use of them. But as banks retreat from bricks and mortar locations, a problem is that even silver surfers who are comfortable with the technology may simply not be able to get the relevant app to work. In rural Dumfries and Galloway, we have too many notspots, where the mobile phone signal is sketchy at best and non-existent at worst. Similarly, there is a lack of decent broadband. The ground truth is that while it might be easy-PC for some to get online, sclerotic broadband and thick stone walls designed to keep out the Scottish damp make too many computers and smartphones expensive placemats.

The need for access to face-to-face banking services remains high, as we have heard. As we have also heard, there are numerous issues with the current banking hub regime. Take Wigtown in my constituency: it is Scotland’s official book town, yet the current banking hub criteria fail to capture the significance of that. Wigtown is evaluated on its modest resident population, with no account taken of the huge influx of visitors when its famous book festival opens its covers. I have a stream of reports of the town centre cash machine running out of spondulicks outwith the festival and anecdotal reports of people gathering for a trip to the nearest hub in Newton Stewart to lift their pensions. That hub is 12 miles distant, and notwithstanding our positively balmy climate in Dumfries and Galloway—no, really—it is not walkable. As for the public transport system, let us just say that we need a calendar and not a stopwatch to time the buses.

When Dalbeattie, the third biggest town in my constituency with a population of more than 4,000 souls and a slew of thriving businesses, struggles to get a banking hub, surely there is a compelling case for lowering the threshold for hubs. I accept that we cannot have an ethos of “wherever two or three are gathered, there shall be a banking hub”, yet equally, we cannot expect one ATM to carry the banking needs of hundreds, if not thousands, of people.

Banking has come on in leaps and bounds since the days of little pens chained to counters and limited opening hours, but on balance, too many people are being left behind in the technological revolution. American banker Felix Rohatyn, who rescued New York from financial disaster, said:

“banking is not simply about profit, but about personal relationships.”

Even in this digital age, we need to capture some of that spirit via our banking hubs.