Local Bank Branch Closures

Brendan O'Hara Excerpts

Tuesday 5th September 2023 Commons Chamber

[Amy Callaghan]

What is most despicable about this situation is that banks have record profits, but are not investing them in our communities. Our constituents, particularly those who are vulnerable, need banks to maintain their presence on our local high streets. It is incumbent on Government to act and to incentivise banks to have a high street presence.

[Brendan O'Hara (Argyll and Bute) (SNP)]

I thank my hon. Friend for securing this debate. The support she is getting from across the House is quite telling.

Rural Scotland has been battered by bank and post office closures in recent years. The Bank of Scotland plans to close its Dunoon branch on 5 December. We have seen how this works: the banks close a branch, they advise us to use the post office and, all too often, the post office closes. I have made my feelings very clear about that particular closure, but will my hon. Friend join me in congratulating the people of Dunoon, particularly Dinah McDonald, who from her shop Bookpoint is leading the community fightback by gathering 1,000 local signatures to petition Lloyds to reverse this ill thought out and ill conceived idea and decision?

[Amy Callaghan]

I welcome my hon. Friend’s intervention and throw my full weight behind the campaign of the people of Dunoon. We know good folk come from Argyll and Bute, so I am very happy to support that campaign.

My constituents in East Dunbartonshire have suffered from this trend, watching bank after bank close its doors. Seven local banks have closed since 2020, most recently Barclays in Kirkintilloch and the Bank of Scotland in Bearsden—similar to my hon. Friend’s experience. Fortunately, a Bank of Scotland branch remains in Milngavie, but for how long? I will continue to set out the need for action and Government intervention as I progress my case for the continued need for high street banks, but I will start with a couple of questions for the Minister. I would appreciate some comment from him on them when he gives his response.

What are the Government doing to incentivise banks to maintain a high street presence? Do the Government recognise why that is important and necessary, and if they do, why the hesitance to intervene? That hesitancy is to the detriment of our constituents, particularly those who are vulnerable.

--- Later in debate ---

[Andrew Griffith]

In the interest of time I will stick to the topic, but I am delighted that the hon. Member is here in person, as indeed are you, Mr Deputy Speaker.

Change is not comfortable, but it does happen. Let us consider payphones. It would not surprise me if Hansard had records of similar debates about the decline of payphones. At one point, at their peak in the 1990s, there were almost 100,000 payphones in this country. Today there is just a fraction of that number. Technology has moved on, and nearly everybody has access to either a landline or a mobile phone.

By the same token, it would make little sense to force a business to keep a physical branch open when developments in the market mean that eyeballs and footfall have moved elsewhere. Nor would our high streets be particularly well served by bank branches gathering dust and lying essentially unused. We need to find new uses for them—perhaps the aspiration of the hon. Member for East Dunbartonshire for independence will produce new uses for these bank branches—in the same way that so many of our communities and villages today have a Blacksmith’s Arms public house.

[Brendan O’Hara]

What responsibility, if any, does the Minister think the Government have for these closures? This idea that we can all be digital by default might work well in London, Glasgow, Edinburgh or wherever, but digital by default does not work in rural communities. There needs to be a solution for those who cannot access these systems, as he would have us all do.

[Andrew Griffith]

This Government take responsibility, and I was just about to explain how, for the first time, we have taken the statutory right to protect the use of cash. That has been on the statute book for a number of weeks after the House passed the Financial Services and Markets Act 2023. It is also why we support the very rigorous guidance given by the Financial Conduct Authority in cases where bank branches are closing.