Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)

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I beg to move,

That leave be given to bring in a Bill to set minimum service standards for the provision of banking and postal services in rural areas, including for the provision of services through physical outlets; and for connected purposes.

I am pleased to have the opportunity to discuss an issue that impacts on a significant portion of our population but too often falls by the wayside. I will shine a light on the unique challenges faced by our rural communities because of the withdrawal of vital services such as bank branches and post offices.

In a world hurtling towards digitalisation, we sometimes forget that not every part of our society can adapt to that transition equally. For some in rural communities, the cloud is more likely to provide rain than a platform for accessing essential services. For many in rural areas, banks and post offices offer more than just financial transactions or mail delivery points: they are lifelines and community hubs that connect individuals to the wider social and economic network. The withdrawal of those services is more than an inconvenience; it is a disruption that risks leaving our rural communities high and dry.

Rural communities form the bedrock of Scotland, and I am sure others will agree that it is the same for their countries, too. Such communities safeguard our natural resources, produce our food and contribute significantly to our cultural heritage, yet they face increasing marginalisation and neglect. The closure of bank branches and post offices owing to economic shifts and technological advancements has left our rural residents feeling overlooked and isolated. When they were needed to save the banks, they were told in countless adverts that the banks would support their communities, but village by village, town by town, those promises have vanished as corporate priorities have shifted. Similarly, the failure to pay postmasters properly, and the steady withdrawal of government services, has left many local post offices simply unsustainable and struggling. Let us not forget the damage that the Horizon scandal did to the post office network.

For our communities, this issue transcends financial and communication inconveniences. For our older citizens, those services might be their only way of managing finances or staying connected with loved ones. Local businesses rely on those outlets for transactions and receiving supplies. The digital alternatives, which are often considered commonplace in urban areas, are inaccessible because of inadequate internet connectivity or a lack of digital literacy. After all, if an Amazon customer in London cannot find a working Evri return point after trying four different locations, what chance do those living in rural areas have?

How do we address this problem? What can we do to ensure our march towards progress does not sideline these vital communities? The Bill proposes the implementation of legislation to safeguard these physical services in our rural areas. The legislation would mandate a minimum number of physical branches per population, ensuring rural communities have access to these crucial services. We must certainly invest in improving digital infrastructure and digital literacy programmes, but the physical presence of these services is indispensable. They provide a sense of community and reassurance that digital platforms simply cannot replicate.

Incentives for banks and institutions to maintain these services in rural areas could be introduced, such as tax breaks or shared service models where multiple providers share a facility to lower operational costs. Yet while banking hubs may offer a solution to some, progress on these is glacial at best. With no legislation to back a community right to back this up, there is no meaningful incentive to provide these everywhere that they are needed.

Of course, we should also consider innovative delivery models such as mobile bank branches or post office vans to ensure accessibility for all, particularly those who might find travel difficult, but these models should supplement, not replace, physical services, and they must be designed to foster rural resilience. Services for rural areas must be designed to succeed, not to fail. That is why rural communities require a legal obligation for these services. The ongoing withdrawal of essential services from our rural communities is not just an issue: it is a crisis.

We must ensure that our digital transition is inclusive, compassionate and considerate of all of our citizens regardless of their location. Progress should never come at the expense of leaving anyone behind. Our rural communities deserve the right to access the same services and facilities as urban communities, and legislation to protect these services gives voice to the needs and rights of our rural communities.

The role of rural communities in our nation is indispensable, preserving our environment, ensuring food security and maintaining cultural heritage, yet these communities are often sidelined, left grappling with dwindling essential services. Bank branches and post offices are not mere conveniences: they are essential lifelines connecting them to the broader social and economic network of our country.

The UK Government’s inaction in addressing these issues has left our rural communities floundering. The onus lies here in Westminster where the power has been retained. The UK Government are the only ones currently capable of taking action, yet concrete measures to halt the decline of these essential services have been sorely lacking. Without intervention, the digital divide will continue to widen and our rural communities will face increasing marginalisation. It is crucial that the UK Government take proactive steps to tackle this issue, or devolve the power to Scotland for us to do so ourselves.

In Scotland, especially after Brexit, our rural communities are experiencing population decline. Young people are leaving to seek new opportunities elsewhere without the new blood we previously had coming in, leaving behind an ageing population. This demographic shift poses its own challenges, from a dwindling workforce to added strains on services for the elderly. The very fabric of these communities—the traditions and practices preserved over generations—are consequently at threat.

Immigration can play a significant role here: by welcoming new Scots from overseas into these areas, we introduce new residents eager to contribute to the local economy and community, but we must also strive to create inclusive, welcoming communities that can support that necessary growth and sustainability of these towns and villages. With independence, we can do that ourselves, but action is needed now.

The survival and prosperity of our rural communities, particularly in Scotland, requires a multipronged approach. The protection of essential services, investment in infrastructure, and the creation of opportunities are all threads in this intricate tapestry. The fate of our rural communities is intrinsically linked with that of our nations. By ensuring their survival and growth, we create a resilient and diverse Scotland rich in tradition and culture and natural resources.

This could be true for the other nations of the UK as well. Let us not forget that progress is not solely about thriving cities and technological innovations; it is also about our villages, towns and farmland, and the people who call those places home. The strength of our nations lies in the unity and welfare of all our communities, both rural and urban. Let us ensure that we uphold that strength by safeguarding the services that our rural communities depend on.

Question put and agreed to.

Ordered,

That Drew Hendry, Brendan O’Hara, Ben Lake, Marion Fellows, Allan Dorans, Angus Brendan MacNeil, Richard Thomson, Patricia Gibson, David Linden, Dr Philippa Whitford, Owen Thomson and Alan Brown present the Bill.

Drew Hendry accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 24 November, and to be printed (Bill 332).