Bank Closures: Rural Areas

David Smith Excerpts

Monday 24th February 2025 Commons Chamber

[Simon Hoare]

I am grateful to my hon. Friend, because again she enhances and underlines the argument that I have been deploying, and for which colleagues across the House have been kind enough to add their support.

I suppose my annoyance is that the people who write the policies, whether they are the regulators or those in the bank boardrooms, do not know what living in a rural area is like. If they are in the Square Mile, they are not part of a rural community. They may have a getaway weekend retreat that they dash off to in their personalised number-plated Land Rover or Range Rover, in which they take their food down from Waitrose, before coming back to London on the Sunday, but that is not living in a rural area. That is not running a business in a rural area.

[David Smith (North Northumberland) (Lab)]

rose—

[Simon Hoare]

I give way to the hon. Member for North Northumberland, which really is a rural area.

[David Smith]

I thank the hon. Member for securing the debate. He mentioned the Square Mile there. In my constituency of North Northumberland—the third largest in England—there are eight branches in 2,100 square kilometres. That has gone down by 64% since 2015.

I want to highlight a point raised elsewhere in the debate. Banking hubs are important and, like other Members, I am pushing for them in my constituency; but again, the role of the Post Office in those banking services is key. We had to fight together as a community to secure Wooler post office. I must give credit to Glendale Gateway Trust for securing that. Does the hon. Member agree that post offices are absolutely vital and part of the solution to this problem?

[Simon Hoare]

The hon. Gentleman is absolutely right. In many respects—[Interruption.] I am beginning to get paranoid; I hear voices. He is absolutely right to make the point that he does. I pay tribute to how the Post Office has stepped up. Very often, in providing that sort of transactional bank service, it has supported the continuance of rural post offices, which can often be marginal and fragile businesses themselves. Again, I think it an easy crutch to lean on to say, “Well, of course, the post office does this.” We can all applaud what post offices do, but customers cannot use them to talk to someone from their bank to discuss their overdraft, loan, mortgage, business credit card maximum or whatever it may happen to be.

I say to the Minister that we want our local businesses and small and medium enterprises to flourish—small, micro and family-owned businesses are very much the hallmark of a rural economy—and they have the greatest need, on a more regular basis, for that relationship with their banks. Then, the banks know the nature of the business and its long-term viability, and they can build that relationship.