Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what representations he has received from residents in (a) Wick and (b) other towns in cases where a bank branch has been proposed for closure at the same time as the proposed closure of the last post office in that area; and if he will make a statement.

Though I understand the disappointment felt in a community when a bank branch closes, these are ultimately commercial decisions in which the government does not seek to intervene.

We know that the retail financial landscape is changing, as more consumers and businesses opt for the convenience, security, and speed of digital payments and digital banking. Banking service providers need to balance customer interests, market competition, and other commercial factors when considering their strategy.

However, the government also firmly believes that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live, continue to have access to over-the-counter banking services if they wish to use them. That is why the government supports the industry’s Access to Banking Standard which helps customers to understand the options they have locally to continue to access banking services, including specialist assistance for customers who need more help.

Alternative options include the Post Office, which allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches across the UK. Over 90% of the national population live within one mile of their nearest post office branch, and over 99% within three miles. Almost 99% of the rural population also lives within 3 miles of their nearest post office branch. While there is no programme of post office closures, some unexpected closures can occur, often for reasons beyond the control of the Post Office. When this happens, the Post Office works hard to find alternative service providers so that services can be restored.

In September 2020, the FCA published guidance setting out their expectation of firms when they are deciding whether and how to reduce their physical branches or the number of free to use ATMs. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs, and other relevant branch services and consider possible alternative access arrangements. This will ensure the implementation of closure decisions is done in a way that treats customers fairly.