Royal Bank of Scotland Branch Closures

Sarah Dyke Excerpts

Tuesday 14th May 2024 Westminster Hall

[Deidre Brock]

Yes, Sir Charles. A number of people expressed interest in being here and talking about branch closures in their areas, so I have allowed for that in my timing.

I absolutely agree with the hon. Member for Strangford (Jim Shannon) and I will make some points about that later. The impacts on rural areas are particularly stark and I am very much aware of them, having been part of the Scottish Affairs Committee that conducted an inquiry.

[Sarah Dyke (Somerton and Frome) (LD)]

In my constituency, Frome—with a population of 30,000 people —will lose its last bank. It follows in the footsteps of other market towns in my area: Castle Cary, Martock and Wincanton. Many of my elderly constituents are very worried that they will lose their physical, face-to-face contact with their banks. Does the hon. Member agree that, to combat the loss of bank branches, we must support communities by triggering the development of community banking hubs that safeguard people’s right to face-to-face contact with their banks, particularly in rural areas?

[Deidre Brock]

Absolutely, and I will make some points about that later.

I say, with a heavy dose of sarcasm, that banks cannot be expected to cut their profits and serve their customers when they have shareholders to please, even when—in the case of RBS—taxpayers bailed them out when they needed it and still own a third of the business. How often can we in this place bemoan bank branch closures while the Government sit on their hands and refuse to meaningfully intervene? The speedy decline in branches is alarming: almost 6,000 have gone, across the UK, at a rate of 54 a month since 2015. Do we just accept sleepwalking into a cashless society and the deepening of the digital divide? Should we all be forced into using systems that may go against our very human preferences for face-to-face services just because it is cheaper for the banks? What kind of society do we want to be? A society that looks out for everyone, or a society where markets rule and only the fittest survive?

--- Later in debate ---

[Bim Afolami]

I am very happy to speak with the hon. Lady about the challenges that Northern Ireland has in this regard—the statistic she outlined speaks for itself. In relation to the criteria, this is an industry-led set of rules—the Government do not determine which banks’ branches open or shut—but there is definitely much more work that we can do, working with the industry, to see whether we can improve things.

The industry has come out, through UK Finance, and said that, over the next 18 months, more than 225 banking hubs will be opened. That will mean a rapid increase in the speed at which banking hubs will open compared with recent years, and the industry is committed to that. However, I am very happy to have a conversation with the hon. Lady about Northern Ireland in particular.

To respond to the hon. Member for Edinburgh North and Leith regarding the Equality Act 2010, like all service providers, banks and building societies are indeed bound by the Act, and it is not our judgment that they have somehow contravened it. They are bound to make reasonable adjustments, where necessary, in the way that they deliver their services.

In the time remaining to me, I would like to talk a little bit about banking hubs in particular, because I think they have been a unique proposition and have proved, in most cases, very popular where they have appeared. The issue has been, “Let’s get them faster and let’s have more of them.”

[Sarah Dyke]

I have already mentioned that, in my constituency, many banks have been closing and many market towns have been left without a bank, but many businesses are also really concerned about the lack of banks in their areas. People still want to use cash, and businesses are still taking cash, but they now need to travel many miles across the constituency at the end of the working day to deposit their cash safely. Will the Minister comment on how his Department proposes to manage the negative impacts on some of our vibrant businesses—such as those in my constituency—that make up our villages and towns, which will now have to travel much further to deposit their cash safely?

[Bim Afolami]

My response is, in part, to repeat what I have already said, which is that we were the first Government to legislate on access to cash in law, through the Financial Services and Markets Act 2023. That sets out that people should be no more than three miles away from access to cash. In relation to banking hubs and the ability of small businesses to use bank branches or a banking hub, that is why banking hubs are so important. These hubs help people and businesses to withdraw and deposit cash, pay in cheques, and check their balances through the post office counter. They also provide a community banker who can help people with wider banking services, from making a transfer to providing support for fraud and scam victims.

The hubs are deployed by Cash Access UK—the company owned and funded by nine major high street banking providers—in response to an assessment of the community’s cash needs by Link, the co-ordinating body that sets the criteria. As I have already explained, I think that in many instances that criterion needs to be changed by the industry, and I hope that it will do so. To ensure that there is no gap in the provision of services, industry has committed that, if a hub is recommended, it will not close the branch that it replaces for up to 12 months, until that hub is open. If there is a delay beyond that, a temporary hub will be put in its place.

Public Services in Cornwall: Funding

Sarah Dyke Excerpts

Monday 15th January 2024 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

It is a great pleasure to bring this debate to the House this evening. It is a particular joy that it has come so early, because it means that I have two hours to talk about my favourite subject—Cornwall. The whole House will be aware that I view Cornwall as a very, very special place—a unique place in many ways. I always count it as an incredible privilege that I was born and raised there, have lived and worked there my whole life, have raised my family there, and now have the joy of seeing my grandchildren grow up there as well.

Clearly, I am not the only one who views Cornwall as a very special and wonderful place. We have seen significant numbers of people choosing to move to Cornwall in recent years, and, of course, around 5 million people every year come on holiday. It is very easy to have that image of Cornwall as a wonderful place to go on holiday—we all have picture postcard images—without understanding that, behind many of those images, individuals, households and indeed businesses face a number of very real challenges.

We are a relatively low-income economy, with higher than average house prices and a number of other factors that make life challenging for many people. It is not just households and businesses that face challenges in Cornwall, but those who seek to deliver our public services as well. I think that we would all agree in this place that funding for public services should be based on two factors: the need or the demand for that service; and the cost of delivering that service locally. I hope to present to the Minister, whom I am pleased to see in his place, some of the issues that are unique to Cornwall. I particularly want to mention the combination of factors that mean that we face of number of very real challenges when it comes to delivering public services in Cornwall. There is a need, I believe, to review and reflect on those challenges when it comes to the allocation of funding for our services in Cornwall.

[Sarah Dyke (Somerton and Frome) (LD)]

I congratulate the hon. Member for St Austell and Newquay (Steve Double) on securing this important debate. As a fellow south-west MP, I know that what he is referring to is also reflected in Somerset. Somerset Council is struggling to revive discretionary public services, which it wishes to do because of the current unfair funding method. In the last financial year, rural councils could budget only £77 per head on discretionary services, while urban areas spent more than double that. Does the hon. Member agree that more needs to be done to provide our rural constituents with the services they deserve?

[Steve Double]

I wonder whether the hon. Lady actually read the subject of the debate, which is specifically about funding and delivering public services in Cornwall. She can make her points in her own debate about her part of the world; I am here to talk about Cornwall this evening.

There is a need to reflect on these challenges and this combination of factors that we face in Cornwall when it comes to the funding that we receive for our public services. My first point is about geography. Cornwall has a unique geography within the British Isles. We are long and narrow peninsula, unlike any other part of the country. We are almost an island. As I have said in this place before, if the River Tamar was 2.5 miles longer, we would actually be an island, and there is many proud a Cornishman who has talked about taking their shovel and finishing the job to create an island. The challenges we face often have more in common with those of an island than with being a part of the mainland.

Oral Answers to Questions

Sarah Dyke Excerpts

Tuesday 19th December 2023 Commons Chamber

[The Chief Secretary to the Treasury (Laura Trott)]

I will write to the hon. Gentleman.

[Sarah Dyke (Somerton and Frome) (LD)]

T6. Mr Speaker, I wish you, those across the House and my constituents a very merry Christmas. People in rural areas suffer more than their urban counterparts because of the rural premium they encounter in their daily lives. With food inflation at around 10%, people in Somerton and Frome are once again facing a choice between heating and eating. What recent assessment has the Department made of the effect of inflation on food prices?

[Laura Trott]

I know that the hon. Lady will have welcomed the most important change to cost of living pressures, which is inflation coming down. In addition, we have had the cost of living payments this year, and also benefits going up by 10.1% this year and by more than the expected level of inflation next year. We as a Government have done all we can to support people and will continue to do so.