Closure of High Street Services: Rural Areas

Debate between James Naish and Jamie Stone

Wednesday 5th February 2025 Westminster Hall

[Jamie Stone]

Indeed. The hon. Member makes a sound point. My wife hails from Northern Ireland, and I know that the problems there are very similar to those in Monmouth, the highlands of Scotland or wherever.

Recently, my splendid team and I had the pleasure of visiting the Acton banking hub. We were mightily impressed by its operation and commitment to making cash accessible to the community. The good news, turning to the point made by the hon. Member for East Londonderry (Mr Campbell), is that we are going to get a banking hub opened in Wick in my constituency this summer. That will be most welcome. The organisation in charge met the local people last week and the reception was very warm indeed. There is a sense of relief that banking hubs are at long last being rolled out, but the point about the speed of rolling them out is well made.

[James Naish (Rushcliffe) (Lab)]

A lot of people, when selecting their bank, go to the local town and choose the bank that their parents used; but with the volume of closures taking place we might be getting to the point where banks lose business, as we stop going to the NatWests and the Lloyds, the high street banks of yesteryear, and people start going to online banks. Does the hon. Member agree with me that the banks’ approach is counterintuitive?

[Jamie Stone]

That point is exceptionally well made. From little acorns, mighty oaks grow, and in the old days a good bank manager would specialise in spotting a potential business that was going to grow, which in turn benefited the bank. We all know of examples over the last 30 or 40 years where that happened.

Banking hubs are not a universal solution, however. In my constituency, the last bank branch in the county of Sutherland, Bank of Scotland in Golspie, is about to close. When it was looked at for a banking hub, it was deemed too small. There is not going to be a banking hub because it did not fit the stats. That means that the whole county of Sutherland—a vast county in the UK—will not have one single bank branch. As I say, access to cash is not the paramount function of banking services; cash access is just the tip of the iceberg in solving the problem of closed branches. It is the other functions I mention, such as face-to-face services, that provide the local community with an invaluable service. The economic impact of these closures cannot be overstated.

High streets are more than just retail hubs; they are engines of the local economy. Returning to my constituency, in the two large towns of Wick and Thurso, which are the largest population centres, high street businesses provide jobs. My two daughters have worked in shops in my hometown of Tain—one in a chemist, the other in a fruit and vegetable shop. The high street attracts visitors who contribute to the local economy—one thinks of Monmouth in that respect.

When these services disappear, so the jobs go. The threat of having to move south when the tourists leave at the end of the tourist season affects the highlands. I know of people who had a summer job; when the tourists go, away they go too, and they may not come back again. That casts that dark old shadow of highland and island depopulation, which the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) will know well. It haunts all of us in the more remote areas of Scotland.

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[Jamie Stone]

I absolutely agree with that point. In my area of the highlands, employees sometimes have to travel long distances with a large amount of money to deposit it, and I wonder about their safety. For somebody of evil intent, it would be quite easy to target them as they make the bus journey or whatever.

The Visa survey revealed that four in 10 people agree that small businesses local to them make the area a nicer place to live in, and 40% of local business owners said that customer interaction has a positive impact on their overall job satisfaction. My two daughters loved working in the chemist and the fruit and vegetable shop, because it meant happy chat when they saw their friends.

There is a deep-rooted appreciation in our communities for such businesses, which greatly contribute to the value of the local area. That value is felt by those who work for the local businesses and, as a result of feeling appreciated, they feel a sense of higher job satisfaction. Those two phenomena cannot be separated.

In Scotland, 87% of independent retailers take part in some form of community engagement, so we cannot underestimate how important sustaining businesses is to all aspects of community life—[Interruption.] I am aware of the time, and I shall finish my speech very shortly. For example, the Tain Gala is wonderful thing that is much loved by the community, but 20 years ago the businesses would each chip in. As there are fewer businesses on the high street, it is much harder to run the Tain Gala. I am sure the same is true of Stornoway and other towns across the length and breadth of the UK.

Here in Westminster, we are calling for economic investment in our communities to boost growth. I am very grateful to the previous Government for helping to establish the Inverness and Cromarty Firth green freeport, but if we do not have the local infrastructure to support it —the banks and shops—it will be much harder. Without our high street, without our banks, post offices, hairdressers and chemists, it is harder to support the local population.

[James Naish]

I want to clarify the point about empowering local councils to make a difference. Does the hon. Gentleman agree that we need to remove the shackles from the funding packages that the previous Government give local authorities and empower local decision makers to make decisions in the interests of those locations?

[Jamie Stone]

I hope Treasury Ministers take the hon. Gentleman’s intervention into consideration.