Closure of High Street Services: Rural Areas

Ben Maguire Excerpts

Wednesday 5th February 2025 Westminster Hall

[Torcuil Crichton]

I do. I mentioned that the building in which in the main post office—the Crown office—in Stornoway is housed in is beautiful and over a century old. Although I understand that the Stornoway post office may itself be retained, it may be converted into a franchise and moved elsewhere. That would have a detrimental effect on the town centre. The post office is right smack in the middle of town and easily accessible. It is, ironically, next to a closed TSB bank branch—the hon. Member for Caithness, Sutherland and Easter Ross highlighted the problems of banks closing across the United Kingdom.

[Ben Maguire (North Cornwall) (LD)]

I am delighted that Bodmin in my constituency recently got a banking hub, but other towns like Wadebridge that are an 8 mile, £20 taxi ride away do not have one. Does the hon. Member agree that we could think about mobile banking hubs that would go out to rural areas such as those in his constituency and mine?

[Torcuil Crichton]

We are lucky that we have retained a mobile banking service in the highlands and islands, with the bank van a familiar sight in villages throughout the islands and parts of the highlands, but a central post office in any town in a rural constituency is vital for businesses to deposit their cash as well as for cruise ship tourists and islanders and town dwellers to exchange their currency. I am concerned that the downgrading of Stornoway’s directly managed branch to a franchise counter would leave many of my constituents disadvantaged.

The Crown post office provides services such as currency exchange, banking services and passport services that many franchised post offices do not. To go to another Crown office or to find bureaus elsewhere would involve an hour-long bus journey, which would be preceded by a three-hour ferry journey, because the nearest branch would be on the mainland somewhere near the constituency of the hon. Member for Caithness, Sutherland and Easter Ross. The limited services offered by a franchised post office would not be adequate for my town or any other, because, as I understand it, there is no requirement for them to accommodate the full spectrum of post office services that directly managed branches currently offer.

Concerned MPs have met Post Office executives and highlighted their concerns to the Minister. I hope that the Post Office and the Government take into account rurality and the unique circumstances of island constituencies when considering the future of post offices and the rural high street.

--- Later in debate ---

[James Naish (Rushcliffe) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Furniss. I am grateful to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for bringing this debate to Westminster Hall today. I am proud to represent the constituency of Rushcliffe, which includes large swathes of rural Nottinghamshire. From Cotgrave to East Leake, rural communities across my constituency are facing ongoing challenges, as the services that many residents rely on are slowly disappearing. Banks, post offices, pharmacies and even pubs, once the lifeblood of villages and towns, are shutting their doors, leaving many residents increasingly isolated and without the essential services they need.

For me, and I think many hon. Members present, this issue is not just about convenience. As has been described, it is about social cohesion, economic sustainability and the fundamental right of rural residents to access the same level of services as their urban counterparts. If we are to ensure that our rural communities are thriving rather than declining, we must take action to address the concerning trends that we have witnessed over the past decade.

The statistics paint a worrying picture. Between 2015 and 2023, more than 6,000 bank branches closed across the UK, with rural areas hit hardest. We have talked about post offices, which often serve as a replacement for lost banking services, but they are also under immense pressure: in 2000, the UK had more than 17,500 post offices; today, that number has fallen to 11,500.

Also key are pharmacies, which I do not believe have been mentioned yet. They too are vanishing from our communities. The National Pharmacy Association warns that closures are accelerating, leaving many rural residents, especially elderly and disabled individuals, without easy access to prescriptions and essential healthcare advice.

[Ben Maguire]

Bodmin, in my rural constituency of North Cornwall, has lost almost all its pharmacies; it has one on the high street. The Cornwall health and wellbeing board has stipulated that no two pharmacies can be within 1 mile of each other, meaning that any future pharmacies will have to be at least 1 mile out of town. Does the hon. Member agree that that rule is not helpful to our high streets, and certainly not helpful to our residents in rural areas, who struggle to get to pharmacies?

[James Naish]

I absolutely agree. I am strong supporter of the Pharmacy First initiative, and it is essential that as a Government we look at ways to expand that scheme, so that more and more people use their pharmacies and the pharmacies are therefore more sustainable.

On average, 29 pubs close every week in the UK, and in many cases there is no alternative place for our communities to gather. We need urgent action to reverse this decline, and in my view Government support is critical.

I welcome initiatives around banking hubs, but we also need to press our banks harder to ensure that they fulfil their moral obligations to our communities. I welcome the high street auction initiatives, which allow vacant properties to be brought back into use. It is vital that we unshackle funding to empower local councils and decision makers to support their areas. I also encourage the Government to accelerate business rates reform, which I know we are committed to.

We must ensure that rural communities have the same access to essential services as urban centres. I look forward to hearing from the Minister about how we can all work together to safeguard vital community assets and keep our rural high streets alive.