Asked by: Neil Hudson (Conservative - Epping Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking with Cabinet colleagues to improve access to banking services in rural areas.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The way consumers and businesses interact with their banking and make payments continues to develop at pace, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital services.
Nonetheless, in recognition that cash continues to be used by millions of people across the UK, the government is currently taking legislation to protect access to cash across the UK through Parliament as part of the Financial Services and Markets Bill 2022. The legislation will establish the Financial Conduct Authority (FCA) as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
The government also believes that all customers, wherever they live, should have appropriate access to banking services. The government does not intervene in commercial decisions on branch closures, but guidance from the Financial Conduct Authority sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers and consider possible alternative access arrangements.
Asked by: Neil Hudson (Conservative - Epping Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking with Cabinet colleagues to help improve access to cash in rural areas.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The way consumers and businesses interact with their banking and make payments continues to develop at pace, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital services.
Nonetheless, in recognition that cash continues to be used by millions of people across the UK, the government is currently taking legislation to protect access to cash across the UK through Parliament as part of the Financial Services and Markets Bill 2022. The legislation will establish the Financial Conduct Authority (FCA) as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
The government also believes that all customers, wherever they live, should have appropriate access to banking services. The government does not intervene in commercial decisions on branch closures, but guidance from the Financial Conduct Authority sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers and consider possible alternative access arrangements.