Bank Closures and Banking Hubs

Kirsty Blackman Excerpts

Thursday 5th June 2025 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I thank the hon. Member for Blyth and Ashington (Ian Lavery) and the right hon. Member for Tatton (Esther McVey) for bringing this debate before us today. I want to make a few comments.

I agree with the hon. Member for South Norfolk (Ben Goldsborough) that access to banking services is a major issue in rural constituencies, but it can also be an issue in urban constituencies. In parts of my constituency, which is wholly urban, some communities have been left without banks. Owing to the way public transport works and its unaffordability in some places, accessing banks can still be hard, even if people live in a community that is part of a city, so we need to make sure that we are looking at this issue as a whole in all the communities affected. Public transport can be a significant issue.

Where capitalism fails, we need market intervention—that is what should happen. We need more market intervention to ensure that there is at least a minimum, if not a universal, banking service. A number of the banks that have closed in my constituency have said, “It’s okay, because people will be able to go to the post office.” However, the post office in Seaton has closed, and we have been fighting for years to get a new post office in the community, but nobody is willing to take it up. That community is left without either of those services, and people have to travel. In common with the hon. Member for Normanton and Hemsworth (Jon Trickett), a significant proportion of my constituents—at least a third—do not have access to a car, and getting around the city and to the bank can be pretty difficult for them.

We have universal service obligations when it comes to broadband and to Royal Mail delivery, but we do not have them when it comes to post office services and banking services, yet cash is incredibly important. The right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) mentioned access to cash, but that is not the only reason we need banking services. There are some things that can only be done in a bank—whether that is businesses depositing the cash that they have taken, people taking cash out of a cash machine, or individuals signing forms to approve a loan or a mortgage. Some of those things can only be done physically in the bank, including things that people need to do only once a year. Someone living in Banff, Aberdeenshire, will have to spend an hour and a half to two hours on public transport to get into the city—a significant length of time. As the right hon. Member for Wetherby and Easingwold (Sir Alec Shelbrooke) said earlier, we are charging people for that privilege. Even though it might be free to withdraw cash, the public transport that they need to take in order to get to a bank is not free.

I urge the Government to look at the minimum services that people need in order to access cash and banking services that are close to them, and that they can access by whatever method of transport they happen to have. Could the Government please take action on this?