Bank Closures: Rural Areas

Gregory Stafford Excerpts

Monday 24th February 2025 Commons Chamber

[Simon Hoare]

I am grateful to my hon. Friend. His constituency, and indeed a lot of our coastal communities, will have that profile of constituents that is older and more settled, and they will want to see things delivered in the way that they are used to. That does not mean that they shun change completely, but they do have a legitimate expectation.

Let me take the House briefly through the timeline narrative of justification, and then I will give way to the hon. Member for Middlesbrough South and East Cleveland (Luke Myer). You and I, Madam Deputy Speaker, as part of that great Tory intake of 2015—those were the days; it is nearly 10 years—will remember being told that there would never be a town without a bank.

[Gregory Stafford (Farnham and Bordon) (Con)]

Will my hon. Friend give way on that point?

[Simon Hoare]

Let me just finish this point.

That was the first promise, but it seemed to disappear quite quickly. Then the Post Office came in, and then there seemed to be an over-reliance on building societies. I notice that Nationwide—I think it is Nationwide; I could be wrong—is saying in its television advertisement that it pledges not to close a branch before 2028, but it is under exactly the same cost and other pressures as its high street competitors.

Then we were told that the answer to the maiden’s prayer was going to be the banking hub, but there has been quite a lot of disappointment surrounding that. I suggest to the Minister that that is in part to do with the erroneous conflation of access to cash and access to banking services. Link has assessed, perfectly properly, that in Blandford there are ATMs at the local Tesco, at the local Morrison’s and at Nationwide, but just try asking an ATM to amend or set up a standing order or direct debit. A small businessman or businesswoman who wants to extend their line of credit or has a question mark over something cannot ask an ATM those questions. Saying that there is access to cash, as important as that is, is far too blunt an instrument when trying to assess the impact of these closures.

--- Later in debate ---

[Gregory Stafford]

I would not like to claim that I am the Member of Parliament for the whole of Surrey. My Hampshire residents would not be pleased about that. Just last Friday, the Barclays bank in Farnham closed, leaving the whole of my constituency of 101,000 people with just one bank, Santander, and one building society, Nationwide. We are lucky enough to have a banking hub in Haslemere, and we are going to get another one in Whitehill and Bordon—Liphook does not have one—but given that there are only 100 banking hubs across the country and that the Government say they are going to put forward 350, does my hon. Friend agree that the Government are going to have to turbocharge those banking hubs, not just for access to cash, but more especially, as he mentioned, for proper banking services for residents in rural constituencies?

[Simon Hoare]

I agree entirely with my hon. Friend who represents Surrey and part of Hampshire.

I would be happy for the Minister to write to me on this point if it is easier, but it strikes me that there is scope for a little bit of wiggle room with regard to the Financial Services and Markets Act 2023. The Act did not give the Financial Conduct Authority powers to reflect on and assess wider banking services. The Minister’s party, when in opposition, was very keen that it should do so. When my party was in government, for some unknown reason we resisted amendments to that effect, and Labour, then in opposition, did not push them to a Division. I just think that there is too gaping a lacuna in all of this, in that it is only access to cash that is assessed, and not access to banking services.