Banking Misconduct and the FCA

Hugh Gaffney Excerpts

Thursday 10th May 2018 Commons Chamber

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I pay tribute to my hon. Friend the Member for East Lothian (Martin Whitfield) for his important and impressive speech earlier and for calling this debate.

I do not want to speak for long, but I do want to say a few words about the importance of restoring faith and trust in our financial institutions. Recent weeks have brought bad news of further bank closures in Scotland and across the United Kingdom by RBS. Three of the targeted branches are in my constituency, in Stepps, Tannochside and Bellshill. We are continually told that branches are being closed because more people are banking online, but what about the disabled, the elderly and others who want to open a new account? I accept that many people bank differently these days, but I take issue with the speed at which change is being forced through and the damage it is doing to communities along the way.

I ask RBS, if it is watching, to think again. Its closure programme is affecting the worst-off and most vulnerable people in my community and many others, as we have heard today, but RBS will never understand the frustration that customers across Scotland and the United Kingdom feel at these bank closures. Stepps will be a town with no bank at all. That is unacceptable and speaks to the financial isolation and exclusion that can be triggered when these decisions are taken.

I mention all that because our small and medium-sized businesses are going to think twice before seeking to borrow from these financial institutions, and we cannot blame them—not when these banks are prioritising themselves and their profits over the communities they should be serving. They are putting profit before people. I often travel around Scotland and the United Kingdom, and I recently joined the campaign trail around London, and on every high street I see the same thing: “for sale” signs; boarded-up shops; graffiti; small businesses, once a proud part of our communities, closed down, and not because of their own endeavours but because the banking sector did not serve their interests.

This situation worries me hugely, especially as we are about to leave the EU. I campaigned proudly to remain in 2016, and I welcome Labour’s policy on the customs union and those in the Conservative party who might support it. The economic implications for small businesses across Britain of our leaving the EU will be huge, however, and I do not believe we have even started to understand what we need to do to keep them alive and protected from the coming economic shock. I call on the Minister to be loud and proud in getting a better deal for all our constituents and to call a public inquiry so that we can hold the banks to account.