The petition of residents of the constituency of Stoke-on-Trent North,
Declares that following the planned closure by Barclays of their bank branch in Kidsgrove, this would leave the constituency with just one physical bank.
The petitioners therefore request that the House of Commons urge the Government work with Barclays in order to keep their branch open in Kidsgrove.
And the petitioners remain, etc.—[Presented by Jonathan Gullis , Official Report, 19 July 2023; Vol. 736, c. 982.]
[P002848]
Observations from the Economic Secretary to the Treasury:
The Government thanks the hon. Member for Stoke-on-Trent North, Jonathan Gullis MP, for submitting the petition on behalf of his constituents regarding the closure of the Barclays UK Kidsgrove branch.
The Government are sorry to hear of his constituents’ disappointment at the planned closure of the branch. In 2022, almost 9 in 10 (88%) UK adults used a form of digital banking, such as an app or online banking platform, up from 77% in 2017. Indeed, according to Barclays, 86% of the customers of the Kidsgrove branch also banked via other means such as mobile banking, internet banking or telephone banking.
As with other banking service providers, Barclays will need to balance customer interests, market competition and other commercial factors when considering its strategy. Although the Government can understand constituents’ dissatisfaction, decisions on opening and closing branches are taken by the management team of each bank on a commercial basis.
The Government hope that the hon. Member can appreciate that it would therefore be inappropriate for the Government to intervene in these decisions. The Government cannot reverse the changes in the market and in customer behaviour; nor can they determine firms’ commercial strategies in response to those changes. Having the flexibility to respond to changes in the market is what makes the UK’s financial services sector one of the most competitive and productive in the world, and the Government want to protect that. Having a dynamic financial services sector drives innovation and incentivises banks and building societies to keep developing their banking products and services, creating better outcomes for customers.
None the less, the Government firmly believe that the impact of branch closures should be understood, considered and mitigated where possible so that all customers, wherever they live, continue to have appropriate access to banking services.
As the hon. Member may know, guidance from the Financial Conduct Authority (FCA) sets out its expectation of firms when they are deciding 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 consider possible alternative access arrangements. This is to ensure that the implementation of closure decisions is done in a way that treats customers fairly. The new consumer duty also requires firms to act to deliver good outcomes for customers. The FCA is closely monitoring banks and building societies in this regard and if a firm falls short in its provision of reasonable alternatives, the FCA can and will ask for closures to be paused or for other options to be put in place.
In the customer information pack that Barclays has published for the Kidsgrove branch closure, customers are pointed to the nearby free-to-use ATMs at the nearby Tesco superstore (0.3 miles away) and Co-op store (1.0 mile away), as well as alternative Barclays UK branches in Hanley, Stoke-on-Trent (5.4 miles away) and Crewe (9.7 miles away). I understand that Barclays has also implemented a Barclays Local service at the Kidsgrove sports centre, where customers can access day-to-day banking services—excluding cash—three days a week.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office. The Post Office banking framework allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK. The nearest Post Office branch to the Kidsgrove
Barclays branch is on the Avenue in Kidsgrove— 140 yards away. Industry are also working with Cash Access UK and the Post Office to provide banking hubs, where one is recommended by Link. These provide cash withdrawal and deposit services, as well as a dedicated space where community bankers from major banks can meet customers of that bank. So far, over 70 have been announced. Further details about the locations of bank hub sites can be found on Link’s website:
https://www.link.co.uk/initiatives/bank-branch-closures/
In recognition that cash continues to be used by millions of people across the UK, the Government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. Following the passage of this legislation, the Government recently published a cash access policy statement, which sets out the Government’s policies on access to cash. This is available online: