Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he plans to take through the Financial Markets and Services Bill to protect access to in-person banking services for rural communities such as Harpenden.

The Government believes that all customers, wherever they live, should have appropriate access to banking services.

As part of the Financial Services and Markets Bill 2022, the Government has introduced legislation to protect access to cash. The Bill protects access to cash by establishing the Financial Conduct Authority as the lead regulator and providing it with appropriate powers to ensure reasonable provision of withdrawal and deposit facilities.

More broadly against the background of changing technology, decisions on opening and closing branches are a commercial decision for banks and building societies. However, the Government recognises that in-person access to banking services continues to be important for some customers. FCA Guidance is clear that firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements.

For consumers and SMEs wishing to access over-the-counter services, the Post Office Banking Framework allows 99% of personal banking and 95% of business banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK.

Firms are also working together through the Cash Action Group to develop new initiatives to provide shared services including Bank Hubs. The Government welcomes the direction set by industry’s commitments and looks forward to seeing what results they deliver in protecting facilities for local communities across the UK.