Santander Closures and Local Communities

Debate between John Glen and Liz McInnes

Thursday 14th February 2019 Westminster Hall

[John Glen]

I am very happy to look into that. On access to cash machines, as I mentioned in the Adjournment debate last Thursday, we set up the payment systems regulator, which is responsible for overseeing payment systems. The regulator is closely monitoring the situation with LINK and the commitments it has made to maintain the spread of ATMs across the UK. I recognise that the pressure on that network is growing. However, I need to reflect on the relationship with the Post Office rather than trying to answer the hon. Gentleman’s question now.

I am going to make some progress, because I need to leave time for the hon. Member for Glasgow East to respond. Given unparalleled consumer change, the banks have adapted to keep competitive, including by taking some of the decisions we have discussed. That has meant investing unprecedented amounts in digital development, financial capability and tailored support for vulnerable consumers so banking is more personalised, on-demand and flexible, which many people expect in the modern world.

Let me address the impact on the franchising of Crown post offices, which a number of Members raised. Prior to finalising its plans for franchising, the Post Office runs local consultations to engage the local community and help shape its plans. That is in line with its code of practice and has been agreed with Citizens Advice. Indeed, Citizens Advice reported that the Post Office’s consultation process is increasingly effective, with improvements agreed in most cases, demonstrating its willingness to listen to the community.

The Government acknowledge that the post office plays an important part in the lives of customers, and accessibility of post office services is a key Government priority. That is why we have set specific access criteria, requiring 99% of the UK population to be within 3 miles of their nearest post office. Despite the point made by the hon. Member for Heywood and Middleton (Liz McInnes) that legislation does not impose a specific requirement for Post Office Ltd to undertake an equality impact assessment, the Post Office considers the impact of proposed changes to the network on its customers, and the Post Office and all its franchise partners, including WHSmith, are subject to all relevant accessibility legislation.

[Liz McInnes]

Will the Minister give way?

[John Glen]

I am not going to take any more interventions, because I only have four more minutes.

[Liz McInnes]

I just want to raise the issue of disabled access, which would be covered by an impact assessment.

[John Glen]

I will take that matter away and respond to the hon. Lady by letter.

The Government recognise that there are people who are struggling to adapt to new ways of banking or just prefer to carry out their banking in a more traditional way, over the counter. Members made powerful representations on behalf of constituents who find the closure of their local branch an inconvenience at best and a severe obstacle to their daily business at worst, so I want to take the time to reassure them that there is support available to minimise the impact and disruption of those changes.

I recognise the points made by the hon. Member for Ealing Central and Acton (Dr Huq), the hon. Member for Argyll and Bute (Brendan O’Hara) and others about the access to banking standard, which I mentioned in a previous debate. The access to banking standard is an important tool for ensuring that customers feel informed and supported when a branch closes, and all major high street banks are subject to it. It is my view that Santander adhered to the letter and the spirit of the standard when providing support to customers. I cannot account for every individual branch, but I am sure Members will be able to take that up with Santander, who were here to hear their representations.

I recognise that it is important that the standard is adhered to in both letter and spirit, and that support is given, but the Post Office’s commercial agreement with 28 high street banks and building societies enables 99% of personal banking customers and 95% of small business banking customers to carry out their everyday banking at one of the Post Office’s 11,500 branches, which provide an excellent alternative to a bank branch. Everyday essential banking services, such as cash withdrawals and deposits, cheque deposits and balance checking, are all available in every Post Office branch, including those located in retail facilities. Since 2010, the Government have invested close to £2 billion in the Post Office, and we have provided an additional £370 million from April last year until March 2021 to ensure the network can continue to modernise and maintain suitable coverage across the UK. That has meant post office numbers have been at their most stable in decades.

This issue is not just about individual customers; it is about businesses, too. Santander has long had an arrangement with the Post Office for its business customers, who currently cannot deposit cash at a Santander branch and must use the post office instead. Indeed, a third of SMEs visit post offices every week, highlighting the Post Office’s value for business banking. The Government believe that too few customers know about those excellent services, so, at my predecessor’s request, UK Finance and the Post Office worked together to launch an action plan to raise awareness of Post Office banking services. I encourage every Member to support their local post office and make their constituents aware of those banking services.

I also hear Members’ concern about the depletion of the high street. That is why, in the last Budget, the Government introduced a £675 million future high streets fund—not another review but a fund—that seeks to make high streets and town centres fit for the future. Alongside that, we are helping smaller retailers by cutting their business rates by a third for two years from April 2019.

I am conscious of the time, so I thank all Members for taking the time to speak in the debate on behalf of their constituents and local communities. I fully respect the fact that bank branch closures are a symptom of wider changes in our economy. It is important that, in response to those changes, we strike the right balance between promoting a dynamic and competitive financial services sector and ensuring that customers are treated fairly. I take my responsibility for supporting the development of alternatives to banks across the United Kingdom very seriously.

Closure of Santander Banks

Debate between John Glen and Liz McInnes

Thursday 7th February 2019 Commons Chamber

[John Glen]

I promise the hon. Lady that I will come on to talk about that. It is about the relationship between the banks and the post office in the instance where it is the last bank that is closing. I am not here to defend the commercial decisions of banks, but I do think that the measures taken in this case look quite comprehensive with respect to dealing with vulnerable customers.

[Liz McInnes]

I am grateful to the Minister for giving way. He paints a rosy picture of what Santander is doing to help vulnerable customers, but the fact is that it told my constituents in Middleton that they could bank at Middleton post office, which is earmarked for closure and will be moving into a branch of WHSmith, so in my constituency it most certainly is not in touch with what is going on in the town centre.

[John Glen]

I am not seeking to paint a rosy picture. I am setting out plainly the facts about what the bank has undertaken. I obviously cannot account for the way in which every single branch has handled things. I note the hon. Lady’s observations and I am very happy to look into what she says, or to make a link to Santander for her.

I hope that the hon. Lady will agree that this support demonstrates that there is a commitment to the spirit, not just the letter, of the standard, which is warmly welcomed. To ensure that all banks meet the requirements of the standard, the Lending Standards Board monitors and enforces it. Last year, it published its annual report on banks’ adherence to the standard and found that, overall, firms’ engagement was positive and genuine. However, there were some areas where banks could do even more, and the Lending Standards Board is using the full range of tools and sanctions at its disposal to work with banks where they fall short.

Oral Answers to Questions

Debate between John Glen and Liz McInnes

Thursday 21st December 2017 Commons Chamber

[Liz McInnes (Heywood and Middleton) (Lab)]

5. What recent assessment she has made of the effect on public libraries of changes to local authority budgets.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (John Glen)]

Local authorities have a duty to provide a comprehensive and efficient service that meets local needs within available resources. The Government fully recognise the importance and significance of public libraries for local communities.

[Liz McInnes]

I thank the Minister for that response. My local authority, Labour-run Rochdale Borough Council, has endeavoured to keep all our public libraries open, recognising their importance to our communities. They are much more than just books; they are information, support and advice centres. I hold surgeries at our libraries, as does the citizens advice bureau. What action will the Minister take to support such good practice and, in the face of further cuts, how will he ensure its sustainability?

[John Glen]

I was delighted to see that the Manchester combined authority, which includes Rochdale, received £250,000 from the libraries opportunities for everyone fund. I will continue to work with the libraries taskforce to extend benchmarks, toolkits and best practices, and to look at different models of delivering services to ensure that libraries continue to thrive, as we see in Rochdale.