Access to Cash

James Davies Excerpts

Wednesday 20th October 2021 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is a pleasure to serve with you in the Chair, Mrs Miller.

It is also a pleasure to participate in this debate this afternoon and, as others have done, I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on securing it. The debate is on a topic that comes up very frequently in conversations I have with local residents in surgeries in my constituency. In a rural area such as the Scottish Borders, the recent closures of the TSB banks in Hawick and Kelso and the planned closure of Virgin Money in Galashiels mean that for some residents their nearest physical bank branch is miles away in Edinburgh—and when I say “miles away” I mean 50 miles away, which is totally unacceptable. I can very much relate to the earlier comments by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) regarding the impact of bank closures on rural communities, such as those in many parts of Scotland.

That local picture mirrors a national trend. It is estimated that there were over 13,000 bank and building society branches in 2012, but by March 2020 that figure had dropped dramatically to only 8,000.

[Dr James Davies (Vale of Clwyd) (Con)]

I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on securing this important debate. My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) is quite right to refer to bank branches. In my own high street in Prestatyn, over the last five years the number of ATMs has dropped from six to zero, due to the closure of bank branches. Does he agree that incentivising local businesses to host ATMs is one possible way forward?

[John Lamont]

I am grateful for that important point, with which I absolutely agree. It is important for local business that hosting cashpoints is cost effective. I am aware of a number of businesses that have tried to host cash machines, but it has turned out not to be a financially viable option for them.

Although cash use understandably decreased during the pandemic, that should not be a reason to move away from cash completely, and banks should certainly not use it as a reason to close local branches. I have seen at first hand that many local residents and businesses in my constituency use and rely on the vital services that their bank branches offer. Too often, large banking firms present evidence of reduced footfall as a justification for closure, but those figures do not reflect the fact that those vital bank branches provide services to customers week in, week out.

People often to prefer to deal with other people, face to face, and that is compounded by a lack of confidence in using online services as an alternative. Other constituents face difficulties in accessing online banking. For some local businesses, poor connectivity makes card payment machines unreliable, and residents who face connectivity problems cannot rely on the broadband service to access secure banking services. The SNP Scottish Government’s botched roll-out of the R100 scheme has simply compounded matters for many residents in local communities, but that is a longer debate for another day.

Amid the closure of local branches, I welcome that the UK Government have ensured that customers can use banking services across the network of more than 11,000 post office branches. Nevertheless, post offices do not provide the full range of services that bank branches can, including financial advice and planning, as well as privacy, which is clearly important for many residents. I totally share the concerns of my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) about the suitability of the post office to provide alternative services.

To conclude, I again congratulate the hon. Member for Pontypridd on bringing this important debate. I welcome the UK Government’s commitment to protecting access to cash, complemented by initiatives to tackle digital exclusion. There will always be a place for using cash, so maintaining access to the financial services that support my constituents in the Scottish Borders must be an absolute priority for the Government.