Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will hold discussions with LINK on the adequacy of (a) its assessment process for approving banking hubs in rural areas and (b) its considerations of the need for in-person banking services beyond access to cash when approving banking hubs.

Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of remote banking. The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 135 are already open.

Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services.

The FCA’s rules require designated firms to consider a range of factors in their assessments which will account for challenges in cash access faced in rural areas. For example, firms are required to consider the actual travel times and costs to reach cash access facilities and identify gaps in provision where these are unreasonable, which may be particularly the case in rural areas.

Whilst the government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the FCA, which oversees the access to cash regime.