Face-to-Face Banking: Rural Areas

Graham Stuart Excerpts

Tuesday 1st September 2026 Westminster Hall

[Graham Stuart (Beverley and Holderness) (Con)]

It is a pleasure to serve under your chairmanship, Mr Wishart. I congratulate the hon. Member for South Devon (Caroline Voaden) on securing this debate. The timing is fantastic: we have a dynamic Minister at the Dispatch Box, we have an imminent Government review from Richard Lloyd in response to this and we have the opportunity to listen to this cross-party call for change.

After a review, the Conservative Government recognised the need for cash and legislated for it; the introduction of banking hubs, and eventually cash hubs, was all part of that. I am very proud of what the Conservative Government did there, but, as the hon. Member for South Devon set out and other Members have supported, face-to-face banking is an important part too. I hope and expect that we can move forward in the right way and get the balance right between being overly prescriptive to the banking industry and setting a clear sense of direction to make sure that no one is left behind, as so many Members have set out.

It is a happy coincidence that we are having this debate today, because it is the day that Lloyds customers can once again deposit a cheque at a post office or banking hub. Mr and Mrs Proctor came to see me in Withernsea with a simple problem: they could not pay a cheque into their Lloyds account at their local banking hub, which surprised me. I wrote to Lloyds about it, but nothing came about. I then raised it with the Chancellor, and colleagues from right across the House signed a joint letter to the chief executive of Lloyds Bank. I am pleased to say that Lloyds listened and, as of this morning, people can deposit cheques at those places.

These issues being raised by Members across the House today are important. I trust that given the timing of the Richard Lloyd report, the Minister in her seat will make sure that they are be resolved to everyone’s satisfaction.

--- Later in debate ---

[The Economic Secretary to the Treasury (Lucy Rigby)]

It is a pleasure to serve with you in the Chair, Mr Wishart. I am very grateful to the hon. Member for South Devon (Caroline Voaden) for securing this debate. I recognise that she has been a consistent advocate for her constituency on this matter.

I was going to make the point that access to banking attracts considerable interest from across the House. However, I hardly need to say that, given the number of hon. Members who have attended today, or who have personally raised this issue with me while I have been in this role—or indeed who raised it with the former Prime Minister at the Dispatch Box, as the hon. Member for South Devon did recently.

I shall endeavour to respond to all the points that have been raised today. I am, I fear, under pressure to do so in a dynamic fashion—following the remarks of the right hon. Member for Beverley and Holderness (Graham Stuart)—so I will do my best.

I am particularly grateful to all those Members who have shared the practical and, in some cases, very personal circumstances of their constituents—that is especially important. I recognise that in rural communities—the subject matter of this debate—the loss of a branch can make everyday banking much harder. That was recognised by the hon. Member for South Devon, as well as my hon. Friends the Members for Clwyd East (Becky Gittins), for Bury St Edmunds and Stowmarket (Dr Prinsley) and for Morecambe and Lunesdale (Lizzi Collinge), and the hon. Member for North Norfolk (Steff Aquarone), and plenty more besides—too many to name.

It is right to acknowledge, as many hon. Members have, that the way people bank has changed significantly in recent years. Many customers now benefit from the convenience and flexibility of online and mobile banking. For many people, those changes have made managing their finances easier, more convenient and also more accessible. However, it is important that we recognise that while digital services work well for many customers, many people still need to access banking services in person—a point that has been set out thoughtfully and, in some cases, very movingly by hon. Members today. Those include some members of our communities who are older or may be more vulnerable, and those who face barriers to digital banking, not least because of connectivity—a point well made by the hon. Members for South Shropshire (Stuart Anderson) and for Chester South and Eddisbury (Aphra Brandreth). Many small businesses also continue to rely on face-to-face support and cash services.

Around 3.3 million current account holders did not bank online or through a mobile app in 2024. That is a significant number. As has been detailed in this debate, branch closures can have a significant impact on communities, especially where transport links are limited—even on a good run, as the hon. Member for South Devon put it—and where towns provide essential services for a much wider rural area. That is exactly why access to banking services remains important. As a Government, we are committed to ensuring that people who need in-person banking can continue to access essential services.

As the hon. Member for Havant (Alan Mak)—who is no longer here—recognised, access to cash is protected by the Financial Services and Markets Act 2023, but access to banking services is currently not. That is why in May the Government announced an independent review into access to banking services chaired by Richard Lloyd. That review will assess whether changes in access to in-person banking services are causing detriment. It will gather evidence on the extent of that detriment, and look into which groups are affected and which of those are most affected. As hon. Members know, that review has been gathering evidence from consumers, businesses, charities, community organisations, local authorities and industry right across the UK. It will consider whether current arrangements are meeting the needs of customers and communities. That includes banking hubs and other alternative banking services.

I know that many Members—not least those in this Chamber—would like immediate answers to these questions, but it is important that interventions in this space are based on robust data and evidence, and a clear understanding of where the problems are and who they affect. That is why the Government’s review matters. I am not making a case for it to be a substitute for action; it is the evidence base that will enable the Government to act in the right way. Importantly, as Members have said, the Financial Services and Markets Bill, which is currently in the other place, includes a power that will allow the Government to take action to protect access to banking services. Together, the review and the Bill will enable the Government to respond swiftly and proportionately to the results and evidence from the review.

[Graham Stuart]

Banking hubs themselves came out of an industry response from the NatWest executive. Does the Minister agree that we must present the information from the Lloyd review to the banking groups, be clear about what we want, and give them the opportunity to respond and provide a solution, as they did with banking hubs, so that we can perhaps avoid a more heavy-handed governmental approach?

[Lucy Rigby]

I do not want to prejudge the way that we will deal with the conclusions of the review. In response to one of the questions that I was asked, I can say that the Lloyd review’s results and report will be published next month. We can expect it in that timeframe.

The Government’s commitment is further reflected in our support for the roll-out of 350 banking hubs by the end of this Parliament. I am pleased to report that we continue to make real progress against that target. More than 280 banking hubs have been announced, and 240 are already open. As hon. Members know, they provide assisted cash services and allow customers to receive face-to-face support from community bankers representing individual banks. I very much welcome the progress that has been made on the roll-out and on expanding the services available via the hubs. Community banker services now more closely resemble those of traditional branches.