Bank Closures and Banking Hubs

Sarah Olney Excerpts

Thursday 5th June 2025 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

It has been a pleasure to be part of the debate. I thank the hon. Member for Blyth and Ashington (Ian Lavery) and the right hon. Member for Tatton (Esther McVey) for bringing it forward. It would normally be customary, with so many contributors, to say that there has been a wide range of views, but I do not actually think there has been. There has been a wide degree of unanimity on the fact that banking services in this country are in crisis. The lack of access to banking for many of our constituents right across the country is leading to social exclusion, limiting entrepreneurship and having a devastating impact on many of our local economies. I have heard from many hon. and right hon. Members that services cannot just be replaced by online banking, particularly for those who have poor digital connections in their constituencies. The difficulty of accessing banking is a massive problem for those who are reliant on public transport, those who are disabled and those who are elderly or have additional needs.

It is good to hear how banking hubs are making up some of the gap that so many communities are experiencing, but clearly there is a lack of banking hubs, and they do not do everything needed to close the gap in accessing cash or loan facilities. I look forward to hearing the Minister’s comments on that.

The Liberal Democrats are strong champions of their local communities. We want to see the reversal of the damage caused to our local economies by the lack of access to banking. One of the things I call on the Minister to look at is reversing cuts to the interchange fee paid to ATM providers, which would go a long way to increasing ATM provision in many of our communities. The hon. Member for Blyth and Ashington gave a stark example of what happens when cash runs out in certain town centres.

More needs to be done on digital inclusion because, clearly, digital banking will be part of our future banking provision, and for those who struggle to access it, more can be done to assist them. The Liberal Democrats call on the Government to consider a fair banking Act to look at this problem in the round, to think about banking exclusion not just for individuals, families and small communities, but for the wider business sector, and to look at what more can be done to connect our communities and businesses.

I will close by adding my praise to Nationwide for its commitment to maintaining banking services on the high street. I was privileged to join my local Nationwide branch in central Richmond just before recess. The branch celebrates 110 years of being on Richmond high street. While I was there, I chatted to the local staff, who generously gave me some of the birthday cake. Many members of the local community were coming in to do their banking face to face. It was clear not only that it was good for my constituents to be able to use that face-to-face service, but that the staff got great satisfaction from helping customers and being that point of contact in the community. Other banks should be making available that sense of satisfaction to more of their staff, and I would like to see more banks making that commitment to community banking.