Bank Branch Closures
Debate between David Lammy and Gareth Thomas(7 years, 10 months ago)
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Mr Lammy
The hon. Lady makes an excellent point; that is also my experience.
I am talking about consultation with democratically elected people. Banks certainly ought to speak to the local authority leader before making a decision to say, “We’re thinking about it. What do you think the impact might be?” All of us, as professionals and Members of Parliament, are used to having private, confidential conversations every day of the week. We are sometimes able to say, in private, “Have you thought about this or that?” We can talk about the future economic context of a community of which the bank may not be aware. But there was none of that; I was presented with a fait accompli. Frankly, HSBC was patronising.
When I was a 16-year-old with what felt like very little prospects way back in the mid-1980s, I got a little job over the summer holidays in that local HSBC branch—it was then Midland Bank. I feel personally affronted that the bank where I saw my first prospects, and where I had put on a suit and thought that I might have serious job one day, is to be shut down without HSBC even thinking of consulting me. It meant a lot in the local community that I used to work in the bank, but HSBC was not interested. That is what big banking has come to in this country after all that we have paid in. I am frankly appalled by HSBC’s behaviour.
Given that the Government talk about being a friend of small business and the high street, it is important that they think carefully about this issue. In June 2014, research by YouGov for the British Bankers Association found that over 50% of people see a branch as important, with that figure rising to 68% for SME customers. The impact of branch closures goes far beyond local businesses having nowhere to go to get credit or to do their banking. The consequences are grave for the whole high street.
Local retailers are hit hard by the fact that customers go elsewhere when they do not have easy access to cash, which is still the preference for many, despite the rise of chip and pin and contactless payments. Cash still accounts for 46% of high street sales, with that figure rising to 75% in newsagents and convenience stores. On average, local ATMs inject some £16 per withdrawal directly into nearby stores, which amounts to £36 billion a year. More than a third of total high-street spending is contingent on the ready availability of cashpoints.
I was told by HSBC that one reason why it was closing my local branch was footfall on the high street. I pointed to the fact, which it had seemed not to realise, that we had had riots just a few years before and that we had found wonderful businesses that wanted to support the high street, not desert it, as it made its way back from the riots. Given that this bank was meant to be one of our national institutions, citing footfall as its reason was deeply painful to my constituents.
In tough times, people remember who their friends are. The banks should think carefully about their customer base and how their customers feel when banks desert a community that has already been through the mill and is trying to build its way back. I think of parts of this country that not so long ago had floods, for example. It takes a long time for a high street, a village or a town to get over a flood. Are the banks going to blame lack of footfall and say, “Things were a bit depressed for a few months so we just couldn’t stand by you. We’re disappearing”? Customers have stood by them, so it is about time that they grew some, as my mum would say, and stood by the community.
Mr Gareth Thomas
Can I tempt my right hon. Friend to agree that perhaps part of the solution would be more action by regulators and the Government to encourage different kinds of banks to emerge—banks that are profit-making, but not necessarily profit-maximising? Many banks, including those he has listed, will always face pressure from shareholders, in their management’s view, to reduce costs. Bank branch closures are always likely to be among the options available, so perhaps a different kind of bank is necessary.
Mr Lammy
My hon. Friend is right. The House will recall the hugely important role that building societies played in local communities 20 years ago. We destroyed that important relationship as they all merged and became banks, and now we are left where we are. That local proximity and that different structure were lost and now we have to reinvent it. I hope that the hon. Member for Wells is part of that reinvention. The Government should think carefully about whether we need a review of such new structures. If we do, the man to do it is my hon. Friend the Member for Harrow West (Mr Thomas), who knows a lot about mutualisation and co-operatives. We need that back on our high street.
The access to banking protocol is undergoing independent review by Professor Russel Griggs—I am sure that the Minister will refer to it. In response to my written questions last month, the Government revealed their belief that
“banks should act in the best interests of their customers and continue to serve the needs of the consumer as well as the wider economy”,
and that
“it is imperative that the banks live up to the spirit, as well as the letter, of the commitments in the protocol.”
However, the Government also revealed that they have not
“assessed the impact of the protocol or banks’ compliance with their commitments in the protocol”.
Perhaps the Government have not bothered to assess the protocol because they know that it is irrelevant. It cannot and does not aim to alter any decision and, as such, pays mere lip service to the idea of access to banking. The protocol states that after a bank has decided to close a branch, it will engage with local stakeholders in order to understand the impact on the community, businesses and consumers. What is the point of a consultation after the decision has been made? That is not a consultation in the proper sense of the word—it is a notification of the closure. May we change the wording from “consultation” to “notification”? Once the horse has bolted, it does not make a blind bit of difference how customers or local businesses will be affected, so surely it would make sense to have a proper, full and open consultation process in place when the bank is considering the future of a branch, before serving notice on the local community in question.
Another problem with the protocol is that there is no firm definition of adequate replacement services; it is left up to the bank to assess and even define those. Leaving the elderly and disabled with no choice but to take a 90-minute bus trip is not an adequate replacement service by any stretch of the imagination. It is clear that when banks make their decisions, they do not take into account the public interest or the likely damage that a closure will cause. I cannot see how the access to banking protocol is anything other than a woolly and inadequate attempt to protect the bank’s name.
The Government have not assessed banks’ compliance with the commitments in the protocol, I assume because their conclusion would be that there is no mechanism in place to police whether banks have fulfilled the commitments that they made in relation to closing down a branch. If a bank says that it is closing a branch but will work out an arrangement with the post office so that customers can bank there, or will move its ATM so that customers can still use it, are those promises worth anything if there is no way to enforce them? The access to banking protocol is merely being used as a Trojan horse on both sides. Banks can claim they have followed the protocol, no matter how meaningless it is, and that therefore their hands are clean and they do not need to do any more.
On that basis, it really is time the Government got a grip of this quiet scandal and tragedy that is taking place across our country and really hurting a lot of local communities. I commend my hon. Friend the Member for City of Chester for bringing this debate to the House.
Land Registry
Debate between David Lammy and Gareth Thomas(7 years, 10 months ago)
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Mr Gareth Thomas (Harrow West) (Lab/Co-op)
Further to the point made by the hon. Member for Brighton, Pavilion (Caroline Lucas), does my right hon. Friend accept that many businesses that work in property and data are also concerned about the possible privatisation of the Land Registry? They worry that a privatised Land Registry would see the new business owner seeking to extract maximum value from the business, rather than trying to improve access to the data.
Mr Lammy
My hon. Friend is absolutely right. There is deep concern about a hike in fees and a profit motive distorting a public institution that we all value. I hope that the Minister will take that on board and give the House some comfort on that in the coming hours. I give way to the right hon. Gentleman.
BBC: Diversity
Debate between David Lammy and Gareth Thomas
Mr Lammy
The hon. Gentleman is absolutely right. We have gone beyond the point where we say, “The talent is not there. Can we do some training?” The talent exists. Can we now bring it forward and get the change that is required?
One of the central statutory responsibilities of public service broadcasters, as outlined in the Communications Act 2003, is to ensure that the diversity of the UK is reflected in their output. They must broadcast
“programmes that reflect the lives and concerns of different communities…within the United Kingdom”.
Ofcom has made it clear that all public sector broadcasters must do more on diversity and the portrayal of under-represented groups. Its latest research found that 26% of black viewers saw people from black ethnic groups on TV daily. Over half of black viewers feel both under-represented and unfairly portrayed across our public service broadcasts. Some 55% of viewers from a black ethnic group felt there were
“too few people from black ethnic groups on TV”
and 51% felt that black, Asian and minority ethnic people were shown negatively on TV.
Since its inception at Alexandra Palace in Haringey, my home borough, the BBC has time and again proved its worth as a national broadcaster in the quality, depth and breadth of its output. Its great programmes bring the nation together, its outstanding journalism brings stories to life, and its online offering has seen the Beeb continue to flourish and serve its audience in the digital age.
Over the years, the BBC has made significant strides in reflecting Britain’s increasing diversity. In 1964, it made the groundbreaking documentary “The Colony”, about West Indian immigrants living in Birmingham. In 1967 “Rainbow City” was the first drama series that saw a black man in a leading role. There was not a huge number of black actors on television when I was growing up, but Benny in “Grange Hill” was one of them and I was grateful for him. I remember Moira Stuart reading the news, beginning in 1981; the Tavernier family arriving on the set of “EastEnders”; and Diane-Louise Jordan presenting “Blue Peter” for the first time, as I made my way to university—not to mention great shows such as “Black Britain”, “The Lenny Henry Show”, “The Real McCoy” and “Goodness Gracious Me”.
Seeing black faces on the BBC, the national broadcaster, has helped show Britain’s black community that they belong and that they are part of the nation’s social fabric. The BBC is the cornerstone of public service broadcasting in our country and our most important cultural institution. Most of all, it is the recipient of huge amounts of money, receiving £3.7 billion from the licence fee. Tony Hall, the director-general, has admitted that although this is “a truly cross-industry challenge”,
“the BBC must take the lead because of our unique funding and responsibility to licence fee payers”,
which comes with that funding.
Let me state categorically that I am a friend of the BBC; I love its output. Today, my remarks are strong because I think my friend is in trouble. Too many people from ethnic minority backgrounds who work in the organisation have contacted my office over the past few weeks to say that they cannot speak up because they do not want to be labelled a troublemaker. Well, I have no problem with being called a troublemaker. That is why I and so many colleagues are in this House to speak up on their behalf.
Between 1999 and the inquiry of the Select Committee on Culture, Media and Sport into the future of the BBC in 2014—within 15 years—the BBC ran 29 initiatives aimed at black and ethnic minorities, but the situation is still not improving. In September 1999, it published a statement of promises, pledging better to reflect the UK’s diversity. In 2000, it published a cultural diversity action plan, promising that the corporation would
“reflect the UK’s diversity in our programmes, our services and workforce”.
It set up a new recruitment agency to reach out to “different communities”, a mentoring programme and a development scheme to enable
“minority ethnic staff to compete for senior positions within the BBC”.
In 2011, the BBC published “Everyone has a story: The BBC’s Diversity Strategy 2011-15”, which outlined its
“determination to visibly increase our diversity on and off air”
and five separate
“strategic equality and diversity objectives”.
Diversity was outsourced to various divisions, which were told to create divisional diversity action plans and diversity action groups.
In 2014, Tony Hall unveiled yet another action plan to tackle on and off-air representation, stating
“we need to do more”.
He announced a senior leadership development programme, under which six talented people from black and minority ethnic backgrounds would come forward, and a diversity creative talent fund.
We heard last year, and we are hearing it again, that at the end of this month the BBC will publish an equality and diversity report. Yet another one is coming very shortly, and it is all going to be fixed—£3.7 billion! It will be another strategy to get our teeth sunk into, and we will fix this challenge. If the BBC is genuinely a universal broadcaster, we have to ask these questions. This can no longer be about skills training. The skills are there. This is about the institution and the change that is now required. That is why we brought this debate forward.
I am growing tired of strategies, new approaches, action plans, initiatives and press releases. The net result of all these strategies and initiatives is, sadly, very little. Despite the good intentions, the rhetoric has not been matched by real progress. In 2011, the proportion of the BBC’s workforce that was from a black, Asian or minority ethnic background was 12.2%. Tracked against the progress of its 2011-15 strategy, we see modest rises to 12.3% in 2012, 12.4% in 2013, 12.6% in 2014 and 13.1% in 2015. In four years, we have seen a 0.9 increase. In 2003, BAME employment was 10%, so in 12 years, it has increased the proportion of black, Asian and minority ethnic staff by just 2.2 percentage points.
That is still not reflected by an increase in management roles in the organisation. We can all go into Broadcasting House and see black staff in security and at the junior end, but when we walk into that newsroom and think about the editorial decisions that are being made, we must ask ourselves, “Is this really representative of our country as a whole?”
Everyone I have spoken to recognises that over the past two to three years, on-screen representation has improved significantly. There are areas of the BBC’s output that, frankly, are fantastic. I have young children, and children’s television is one of the areas that is really diverse. Anyone here who has teenagers or slightly older children who watch BBC Three’s output will know that it is really diverse. Documentary-making is another strong area. Last year, my constituency was portrayed in a documentary called “This Is Tottenham”, which showed the lives of people in that part of north London. However, in many areas, there is still a huge amount of work to be done.
Let us take the headlines around the BBC’s new drama, “Undercover”, which people can see on BBC iPlayer at the moment. It is a great drama, but it was announced with great fanfare as, “The first time we’ve had a drama with two black leads.” In 2016? That was not news in the 20th century, let alone in this century.
We must also ask questions about current affairs. I love sitting next to Andrew Neil on a Thursday night, when I occasionally stand in for my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott). Andrew Marr is a great guy, as are John Humphrys and David Dimbleby—when they allow me on the show, which they have not for almost five years. But they are white, patrician men. What does that communicate about our country—that there cannot be a voice that is not a southern one? That there cannot be a woman? That there cannot be someone from a diverse background? Those men are the arbiters of current affairs in this country. We have to be brave and hold our public broadcaster to account. It cannot just appoint the same old faces from the same old schools to the same old jobs. That is not acceptable from a public broadcaster that takes licence fee money from all our constituents. We must hold it to account and say that yes, those individuals are brilliant, but more needs to be done to get that diversity across the spectrum.
A lot of this comes back to senior management, and with systemic change what really matters is who the decision makers are. As I have said, there has been a lot of focus on training schemes and apprenticeships to open up the industry, but we need to change the culture and practices that stop black, Asian and minority ethnic people rising to the top; it should not just be that new schemes are set up to encourage more people to get in from the bottom. Only one of the BBC Trust’s 16 trustees is from a black, Asian and minority ethnic background. The executive directors are really important, as they are the controllers—the people who really govern the decisions on the executive board. Of the BBC’s eight executive directors, none is from a black, Asian and minority ethnic background, and only two are women.
My question to the BBC is simple: what will it take to see a black, Asian or minority ethnic channel controller? When will we get there, I wonder? What have we got to do to see a black commissioner in an important area—current affairs, or drama—in the BBC? Is our public broadcaster really saying that across the population of this great country there are no individuals from a BAME background who could take up those posts today? That is what it has to explain to us over the coming weeks as it heads towards its diversity strategy.
Mr Gareth Thomas (Harrow West) (Lab/Co-op)
Given the lack of diversity at the very top of the BBC, on its board, is it not now time to think about having a radical reorganisation of the BBC’s top management, potentially with elected directors for the board?
Mr Lammy
My hon. Friend is good at radical ideas—he is known for them—and that is certainly one. I am not going to stake my name today on what the change should be, but clearly we have come to a point—perhaps that is why the issue is on the Floor of the House for the first time—where we want step change. Change cannot be incremental any longer. I say that because if we treasure our public service broadcaster and the universality that it represents, I am afraid that in a multi-platform world, where people can turn to other services, that broadcaster is going to be in deep trouble if it does not step up pretty quickly.
In 2015, 9.2% of the BBC’s senior leadership were black, Asian and minority ethnic. Looking beneath the surface, in TV the percentage drops to 7.1%; in news, the figure for senior leaders who are BAME drops to 5.8%. The lack of diversity at management and senior levels creates a dangerous vicious circle. If those decision makers are not from diverse backgrounds, content and programming will lack fresh narratives and insight, and will not speak to the breadth of this country. When we have all the same people at the top, hiring people in their own image, the circle simply stays closed.