Bank Closures and Banking Hubs

Alison Griffiths Excerpts

Thursday 5th June 2025 Commons Chamber

[Ian Lavery]

I of course agree: the criteria laid down by the Government, the banks, the FCA and Link need to be utterly overhauled to represent people in our communities. I will come on to some of the points that my hon. Friend raises.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

All of us in this House share the concern that the disabled and the vulnerable are losing access not just to cash, but to services. Does the hon. Gentleman agree that it is high time we asked the Government to ensure that the FCA reviews its guidelines on this?

--- Later in debate ---

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

I congratulate the hon. Member for Blyth and Ashington (Ian Lavery). It is an honour to speak about the impact of the decline of local bank branches, which is an issue of such importance to my constituents. The closure of the Santander in Rustington is just the latest blow. The need for a robust and fair system of banking hubs is urgent.

High streets have changed beyond recognition. Once, we had Barclays, NatWest and Lloyds on every corner. Now, 6,300 branches have closed since 2015, which is a 64% fall. Cash use may have dropped to 14% of payments, but millions still depend on it, especially the elderly, the disabled and the vulnerable. In places like Rustington, entire communities have been left without local banking. Some are forced online against their wishes, even when they cannot afford the technology or cannot physically use it. At the same time, they are increasing their exposure to phishing attacks. My constituent Roger Mallock has lost a life-changing sum of money to cyber-scammers.

Post offices cannot fill the gaps; the queues are longer, and they cannot handle complex banking needs or take large cash deposits. Despite my appeals to Link, Rustington was denied a banking hub. I raised the matter directly with the Prime Minister and the Economic Secretary to the Treasury. As one constituent put it:

“Banks are licensed by the Government. Those licences should come with a duty to maintain local branches.”

Consider a Ukrainian couple who came to Bognor Regis under the Homes for Ukraine scheme. Thanks to the Santander branch, they opened accounts, and they continue to rely on in-person support due to language barriers; without it, they would lose hours from work and face serious barriers to managing their finances. They are not alone: many elderly and less mobile customers depend on face-to-face services.

Banking hubs offer a limited solution. Only 108 hubs are operational out of the 224 planned, and they can take up to 12 months to open. Worse, the FCA’s rules are too narrow, focused only on cash rather than on broader services. The last Government introduced the Financial Services and Markets Act 2023, which was a start but does not go far enough. Banking is not a luxury; it is a lifeline. We must ensure that digital innovation does not leave millions behind.