Access to Banking Hubs: Hertfordshire

Susan Murray Excerpts

Wednesday 25th June 2025 Westminster Hall

[Susan Murray (Mid Dunbartonshire) (LD)]

It is a pleasure to serve under your chairship, Sir Desmond. I thank the hon. Member for South West Hertfordshire (Mr Mohindra) for securing this important debate.

I begin by acknowledging that my constituency does not fall within the boundaries of Hertfordshire; it is slightly further north. However, as we have heard, the issue of access to banking hubs is an important one across the UK. My constituents, like those of the other hon. Members here today, understand the difficulties brought about by banks closing. Older constituents who have no access to digital equipment or services are often the worst affected. For some, their family members step in to support them with things such as making NHS appointments, but for many, handing over control of their banking feels like a step too far and a loss of independence. Others have no family nearby to help. Being pushed to use complex online banking is not always appropriate for these customers.

In addition, as we have heard, the ability to deposit cash is crucial for many local businesses, and with the closure of more and more post offices, it is a growing problem. Despite having many elderly residents, Bearsden in my constituency has lost all its bank branches and it appears that there is no access to an ATM. There are also no plans for a banking hub there.

The Government have made assurances that by 2029 banks will have set up 350 banking hubs. The truth is that that is woefully inadequate and much too slow. The number of bank branches operating dropped from almost 15,000 in 1986 to just 5,745 by 2023.

[Sir John Hayes]

The hon. Lady is making a powerful point and she is right about the number. The Payment Choice Alliance, to which I have already referred, estimates that if every community with a population of 5,000 or more were provided with a banking hub, there would be about 1,200 of them. Ministers want solutions, not just questions, and that is a solution. I invite the Minister to consider that: any community with a population of 5,000 or more that does not have a bank should have a hub. I think that would be reasonable.

[Susan Murray]

I thank the right hon. Member for making a good point for the Minister to consider.

The closure of branches and their replacement with only 350 hubs represents nothing more than big banks trying to increase their profits further at the expense of their customers. That is not just a mild inconvenience; it presents a serious accessibility issue, as we have heard. For the disabled, the elderly and those without technical know-how, bank branches are often a vital resource.

[John Lamont]

In addition to some customers not being comfortable using digital, some are unable to do so because they do not have broadband. I am sure the hon. Lady’s constituency is like mine. For some communities, if the bank branch has gone, using the banking app is not possible because the broadband capability is not there.

[Susan Murray]

The hon. Gentleman is correct. Even in my constituency of Mid Dunbartonshire, we have dark spots where people cannot access wi-fi. That is an important point.

A vital local resource, banks allow people to deposit cash and cheques, withdraw their money or check their details, and get help from staff. To allow the closure of banks without suitable access to a replacement banking hub is not just inconvenient; it is a step backwards for equality. With that in mind, I urge the Minister to look at the Liberal Democrat proposal for a financial inclusion strategy that would ensure that the Financial Conduct Authority and the Prudential Regulation Authority take into account financial inclusion. That would help to protect access to cash for those who need it, ensure that rural communities are not excluded from accessing resources and, importantly, support banking hubs.