Bank Closures and Banking Hubs

Jim Shannon Excerpts

Thursday 5th June 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Blyth and Ashington (Ian Lavery) on setting the scene and on his introduction of the issue. As an MP for an area that has been hard hit by the removal of 11 banks, first in rural villages and now increasingly in even the main towns of Strangford, the issue is incredibly important. We need the regulation of access to banking services in legislation and to stop the drain towards online and city-centre banking only.

Millions of people in the UK still rely on cash day to day; in fact, some 1.1 million people in the UK remain unbanked and rely entirely on cash, while more than 8 million adults report that they would struggle to cope in a cashless society. A YouGov survey found that nearly 28% of small businesses use cash at least weekly. The British Retail Consortium has shown a rise in the use of cash for the second year in a row to 20% of transactions in 2023, as more and more people use cash to manage their budgets in a difficult economic environment.

While closing branches, banks have managed to increase their profits by some £2.5 billion. It is clear where their focus is. However, once the banks are closed and the profits are allocated to shareholders, how will they continue to up the profits? What services will be removed next? The percentage of branch closures is lower in larger and medium-sized towns and highest in villages and smaller communities, at 50% and 70% respectively.

[Sir John Hayes]

That is why the Link criteria need to change, is it not? The trouble is that rural areas are disproportionately damaged by the fact that the population size is not big enough. People cannot get access to banking in The Deepings, Long Sutton, Donington and elsewhere in my constituency. I am sure it is the same in the hon. Gentleman’s.

[Jim Shannon]

The right hon. Gentleman is absolutely right; that is replicated not just in his constituency and mine, but probably in those of everyone here today. Those in rural areas are twice as likely as those in urban areas to depend on their local post office branch for cash and banking services. With 11 banks closing and two banking hubs opening, we depend more than ever on the post office. We have credit unions but what we can do with them is very limited, despite being very welcome.

While bank networks decline, the Post Office continues to provide free and convenient access to cash through its branch network. However, the branch in Newtownards in Strangford is set to close—there is potential for that to happen, anyway—and that is absolutely devastating because the range of services that are not available in the local garage, which has a sub-post office, will only grow. Even the Post Office must therefore rethink its obligations.

Through the banking framework that the Post Office has with 30 UK banks and building societies, postmasters support over £3 billion in withdrawals and deposits each month, providing a trusted, convenient face-to-face service at the heart of communities. However, large branches such as the one in Newtownards must be left open if we are truly to have a full service.

According to Age UK, 27% of over-65s and 58% of over-85s rely on face-to-face banking. Nearly a third—31%—of people over the age of 65 said they were “uncomfortable” with the idea of banking online. The age sector must be protected, and the way to do that is to require legislatively a better minimum service from banks and post offices that are trying to fill the gap but are pulling back.

So what do I want? I want banks to be required through legislation that they deliver for their customers. I want to ensure that the post offices, including the main post office, are in place in my constituency and to see opportunities through credit unions. I look to the Minister to outline how the Labour Government will protect access to cash, face-to-face banking and a full-service post office in each area.

Business Rates Relief: High-street Businesses

Jim Shannon Excerpts

Wednesday 4th June 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Ms Jardine. I thank the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson). He outlined the attractions of his constituency, and I will do something similar. There will then be a choice for everyone here: which is better? I jest—the right hon. Gentleman’s constituency is lovely.

In a world of online convenience, the role of the high street is ever evolving, but the need to ensure that it is worth while for a business to retain a high street presence has remained. The fact is that the costs of energy, heating and lighting a premises, water and insurance—all those hidden costs—are rising and profit margins are steadily decreasing. The rise in national insurance contributions has put additional pressure on businesses that hire staff, which many can simply no longer stand.

I am pleased to see the Minister in his place. He is a very convivial man, and he never puts across his point of view in a way that offends anyone. I congratulate him on that, and I know that he will try to answer our questions on this issue. High street businesses and business relief are incredibly important.

I am very fortunate to have represented Strangford as an MP since 2010, as an MLA before that and, going back to 1985, as a councillor. I have seen many changes in the high street—lots of things happening and new businesses coming—but one of the cores we have is family businesses, which the right hon. Member for Stone, Great Wyrley and Penkridge referred to. I will mention some of them for the record. Wardens has been there for 125 years. We also have Knotts, another family business. We have local family butchers like Carnduff’s and Mawhinney’s, which have been there for the best part of my life, and local bakeries. The clothes shops are all family-owned. There are very few businesses like KFC and so on—those are all out of the town. The town centre is perhaps unique.

We are fortunate to have a number of restaurants and pubs. The Parlour pub and restaurant dates back to 1860—not many restaurants or pubs date back that far, but we have one. We also have Roma Hamill’s and Rice’s—again, family pubs and restaurants in the centre of town—and we have developed a coffee culture. There is only one thing we are missing in Conway Square in Newtownards, where everything looks idyllic: if the sun is there, Ms Jardine, you could be forgiven for thinking you were in the Mediterranean, but if it is not there, you might have a different opinion—as the rain belts down on you and reminds you that we are probably one of the wettest places in Europe.

I am thankful that businesses have evolved. Excel, for instance, has increased its online sales but committed to retaining its high street presence. That is the point I want to make. Older shop owners have moved on, and their families have decided it is no longer viable to have a shop on the high street and have gone online. Online is good, and I want to see it, but I want to have family businesses on the high street. Excel is a family business. Some 65% of their trade is online, but 35% is in the shop.

It has never been harder to have a shop. Bills are rising, and many in Northern Ireland cannot order things from the mainland. Retail NI has highlighted these concerns. It has said that increases in the cost of business in April are the perfect storm. Some 74% of Retail NI members indicate that they will reduce their number of employees, 86% say that they will cut back on their expansion plans and 96% say that more must be done to support local business and to deliver.

We need our local heart back, and the Minister is the perfect man to make sure we get it. We look forward, with expectation, to his answers and to hearing how he will ensure that our high streets are saved right across this United Kingdom of Great Britain and Northern Ireland.

Regional Growth

Jim Shannon Excerpts

Wednesday 4th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for welcoming the £2 billion of investment announced today for the east midlands. I have been on a number of visits to her region, including with Labour’s brilliant Mayor Claire Ward, who has made a very strong case for the investment being announced today. It shows the difference a Labour mayor can make. I also pay tribute to my hon. Friend and her colleagues from her regional group, who have campaigned as vociferously here as Claire Ward does from her mayoral office in the east midlands?

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers. Regional growth is an imperative for the whole of the United Kingdom of Great Britain and Northern Ireland, and I am pleased that he is expanding the horizons for areas considered for further funding. I am also pleased to announce in the Chamber today news of a previous scheme initiated by the Conservatives and delivered within the time of this Government for the Ards and North Down local council: the Queen’s Parade development. It was one of the regional schemes that were delivered, and £9.8 million was set aside by Westminster for that project. It was signed and sealed, and the project is going ahead. It is estimated that some £70 million of regeneration will come off the back of it, so whenever the Government spend money here, they can be assured that the benefits are significant. The Minister has also hinted at the possibility of other moneys coming through. What commitment can he give to ensuring that coastal communities across all of the United Kingdom of Great Britain and Northern Ireland can apply to similar schemes to improve the beauty and tourist attractions of all our coastal towns and centres?

[Darren Jones]

I thank the hon. Member for continuing his work campaigning for Strangford and for Northern Ireland in general. As he knows, details of funding for the Northern Ireland Executive will be announced at the spending review next week, building on the back of significant increased investment. He is right to say that investment in transport projects opens up opportunities for new housing, new jobs and new livelihoods. I recognise that the Northern Irish economy is one of the best performing parts of the United Kingdom, and we want to continue to support that in the future.

Inheritance Tax: Family-owned Businesses

Jim Shannon Excerpts

Tuesday 3rd June 2025 Westminster Hall

[Susan Murray (Mid Dunbartonshire) (LD)]

I beg to move,

That this House has considered the impact of Inheritance Tax on family-owned businesses.

It is a pleasure to serve under your chairship, Sir John, and a privilege to lead this debate on a matter of real consequence to our economy. I begin by paying tribute to the extraordinary contributions that family-owned businesses make across the country, not least in my own Mid Dunbartonshire constituency. They are not just economic actors; they are part of the fabric of our communities. They offer good local jobs and apprenticeships, sponsor local sports teams, support local charitable activities, and keep our high streets and industrial parks alive with character, energy and local pride.

According to the Fraser of Allander Institute, in 2025 family-owned businesses are in turbulent and uncertain times. They are facing national insurance increases, with many scaling back plans for workforce expansion and recruitment as a result. The latest quarterly economic indicator from the Scottish Chambers of Commerce network presents a stark picture, as businesses face pressure that threatens to derail growth, investment and competitiveness. Taxation is now the No. 1 concern facing Scottish businesses.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady on securing this debate. She is absolutely right to highlight the issue of taxation. Does she agree that taxing businesses at 20% based on their value at the time of the owner’s death cannot possibly take into account the owner’s personal input into the business, and leaves a situation that can run a successful business into the ground? There is only so much that one person can be taxed before the burden is too great, and the taxation the Government are pushing is definitely going to destroy the farming sector.

[Susan Murray]

I thank the hon. Gentleman for raising that issue; I completely agree.

The Centre for Economics and Business Research found that nine out of every 10 privately owned businesses in the UK are family owned, and that they provide employment for nearly 16 million people and contribute more than £200 billion in taxes annually.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 20th May 2025 Commons Chamber

[Torsten Bell]

I certainly can. Our reforms to the local government pension scheme will support local investment in every part of England and Wales. Our defence spending plans will be felt on the ground—total defence spending in the west midlands totals £1.6 billion a year. We are building reservoirs again, including one in the west midlands. We are also getting the country trading once again, including businesses in Tamworth, where PI-KEM, a specialist chemical supplier, recently won a major export order, with £100,000 in UK Export Finance support. Britain, and Tamworth, are open for business.

[Jim Shannon (Strangford) (DUP)]

I want to ask about 18-year-olds, who are just starting off, being encouraged to take out a pension. Whenever I was 18, my mother took me down to see John Thompson, the pensions man in Ballywalter, and he said, “You’re going to take a pension.” I asked, “What for, Mum?” She said, “You’re taking a pension.” So I took the pension. Does the Minister agree that what everybody really needs is somebody like my mother to encourage them to take a pension?

[Torsten Bell]

I did not know where that was going, but I know that I speak for everybody in the House when I say that the whole country needs someone like the hon. Gentleman’s mother.

Speaker’s Statement

Jim Shannon Excerpts

Tuesday 13th May 2025 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Further to that point of order, Mr Speaker. I first knew Sir Roy Stone when I became leader of my group after the 2017 general election. He did, in fact, pass views on the Chief Whips of the time, but I think they are probably best kept to myself for now, because some of them are in the Chamber. He was immensely supportive, and as the leader of a very small group, I learned so much from him. It was the first time that the group had had meetings with the Chief Whip. I speak on behalf of a small party, and Sir Roy’s respect for Parliament, and for the presence of small parties in it, was evident. He felt that we had a role to play, and he enabled us to play that role very effectively.

My lasting memory of Sir Roy was from just after he left. A member of staff, Fflur Elin, could play the harp. Sir Roy found that out, and nothing would do but for Fflur to bring in said harp to play for him. It has been an honour to know him, and people’s recollections of him today tell me that he had immense influence on all of us here.

[Jim Shannon (Strangford) (DUP)]

Further to that point of order, Mr Speaker. On behalf of the Democratic Unionist party, I want to convey to the family of Sir Roy Stone our deepest condolences at this time of tragedy and grief. To serve under a number of Prime Ministers and Chief Whips is no easy task, but he was always fair and impartial. He contributed loyally and with great wisdom. I would not like to say anything against any of the Chief Whips in my party, but I have probably challenged them all, and to be perfectly honest, I probably still do. Sir Roy’s advice was much sought after and liberally given. He set a standard for others to follow, and to admire from a distance. It is always good to cite the Bible at these times; he has run the race, he has fought the good fight and there are many crowns laid up for him in heaven. Thank you, Sir Roy, and God bless all the family at this time.

[Mr Speaker]

These really have been fitting tributes to Sir Roy Stone. He will always be in our thoughts and memories because of what he did for this House. I know that the Clerks feel the same way.

Defence Sector Financing

Jim Shannon Excerpts

Wednesday 7th May 2025 Westminster Hall

[Mr Charters]

I thank my hon. Friend for his sterling work on the Defence Committee. Through our collective industrial strength, what greater deterrent could there be to our adversaries?

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman before, so he knows what is coming. Is it not ironic that at a time when the Government want to increase defence spending—most MPs support that, and I am one of them—the trustees of the Members’ pension fund have decided that there is to be no investment of MPs’ pension contributions in the defence industry? Is it not time for the pension trustees to change their attitude immediately? What a disgrace. I hardly believe it.

[Mr Charters]

There could be nothing more ethical than investing in the companies that support our Ukrainian friends.

I believe Britain’s membership of a multilateral defence development bank could cement Britain as a leader not only in financial services, but in defence. Today, I will also talk about how we can bolster our sovereign defence industries by fixing the capital stack here at home and by sorting out the credit and cash-flow issues for British companies.

I will just take a couple of steps back. When I was at the Bank of England and the Financial Conduct Authority, I was working on cross-border payments, sanctions and so many related things, but more importantly, I had a front-row seat to the regulatory and financial barriers that defence start-ups faced when I was acting head of compliance at a fintech. I saw how everything from export controls and dual-use rules to complex international regimes made it really difficult for those defence customers.

A few months ago, the Prime Minister pledged the largest defence spending rise since the cold war. That sent a clear signal that now is the time to invest in peace. Yet British defence innovators have told me they still face hurdles accessing finance, bank accounts and insurance. That is why my hon. Friend the Member for Aldershot (Alex Baker) and I brought together over 100 Labour parliamentarians to write to the sector, highlighting some of those challenges. Following that, we wrote to the FCA, which helpfully published a statement that, as we have heard from firms, has eased environmental, social and governance perception concerns.

Staffordshire: Cultural Contribution

Jim Shannon Excerpts

Tuesday 29th April 2025 Westminster Hall

[Leigh Ingham (Stafford) (Lab)]

I beg to move,

That this House has considered the cultural contribution of Staffordshire.

It is a pleasure to serve under your chairship, Ms Furniss, and I thank everyone for their interest in attending this Westminster Hall debate. Staffordshire is a county where culture is carved in clay, sung on local stages and carried proudly in the stories of its people. Its legacy is rich and alive, and today I rise to champion our region and its contribution.

Our future links us to our past, but we are not bound by it. That future speaks to the potential of every single one of Staffordshire’s communities—from Stafford, my proud county town, and the vibrant city of Stoke-on-Trent to the quieter, more rural parts of the county such as Eccleshall, Derrington and Church Eaton. Much like our county symbol, the 15th-century Stafford knot, we are all interlinked.

I secured this debate to celebrate Staffordshire’s legacy and to mark Staffordshire Day on Thursday 1 May, which is another important day to vote Labour and champion our community’s future. The debate is an opportunity to discuss tapping into our heritage, building on our creativity and ensuring that our proud traditions and culture continue to be a force for positive change in Staffordshire and beyond.

Staffordshire is known for many things. It is perhaps best known for its ceramics, which I will leave to my hon. Friends the Members for Stoke-on-Trent Central (Gareth Snell) and for Stoke-on-Trent South (Dr Gardner) to discuss in detail, and for its brewing, which I am confident that my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) will discuss at great length.

Those are just the most famous examples of Staffordshire’s skilled craftspeople and their impact on our country’s industrial and creative landscape. As a pioneering industrial county, many of our more modern organisations—such as Bostik, which makes adhesives; Perkins, which makes engines; and GE Vernova, which makes transformers—have grown from roots in more traditional work with metal, clay, leather or textiles.

Much of Staffordshire’s history, which is encapsulated in archives, can be found at the new Staffordshire History Centre in my constituency. At that amazing new facility, over a thousand years of Staffordshire’s history have been brought to life in some fascinating displays. The archives include rare items such as Anglo-Saxon charters confirming the foundation of Burton abbey and a letter written on the eve of the American revolution. A key part of the centre’s collection is the rare books and manuscripts collected by William Salt. For anyone looking for more information about Staffordshire’s past after this debate, the centre is a very good place to start.

As a proud county town, Stafford has a key story to tell in Staffordshire’s cultural history, and it echoes through to today. In its town centre, people can stop for coffee and cake at the Soup Kitchen, which dates to the 16th century, enter the historic churches of St Mary’s and St Chad’s, and take in the interior and exterior of the Ancient High House, which is haunted by a ghost called George and is known for being the largest surviving timber-framed townhouse in England. We also have Stafford castle, which has dominated the skyline in Stafford for over 900 years.

As the chair of the all-party parliamentary group for theatre, I will also talk about theatres. There is the Stafford Gatehouse theatre, famous for its Shakespeare festival and for its hilarious pantomimes every Christmas, which bring audiences from across the county to Stafford. The Gatehouse also provides a space for actors, artists and writers to hone their craft with its hugely popular youth theatre. I was lucky enough to meet some of those actors, artists and writers last Friday before the opening night of “Carrie: The Musical”.

Across the county, we have other wonderful theatres such as the New Vic in Newcastle. It stands out as a theatre in the round and creates an innovative, immersive style of theatre that makes audiences feel as if they are part of the performance. There are also the Regent theatre and the Garrick theatre, which is in Lichfield. They host productions by flagship companies from around the country.

Of course, theatre is not always confined to traditional stages. The Claybody theatre company is based at the former Spode pottery works in Stoke-on-Trent Central. That is a brilliant example of how our county’s cultural history can inspire its present. Its work is fuelled by the stories of the area, and it regularly integrates members of its community company into its productions alongside professional actors. As well as performing in its current historic home, it uses found spaces such as Fenton town hall, which hosted its production of “The Card”, based on the novel by one of Stoke’s most famous sons, Arnold Bennett.

The connection with our past does not extend just to the theatre. Many of our communities come together to celebrate our history, with the Gnosall canal festival being a really good example. Centred on the historic canal boats, that event tells the stories of the village’s past, while bringing people together for live music, entertainment and more.

I also want to talk about the future. Although our past and heritage are a source of pride, Staffordshire’s culture is far from static. It is living, breathing and evolving every single day. Staffordshire remains a county of skilled tradespeople and of artists, and it is vital that we nurture and develop that talent. We must ensure that arts and culture are part of our everyday lives, because that is where we find connection, community and identity.

Last weekend, I spoke with Johny Todd, whose business in Woodings Yard Studios stands as a proud reminder of Stafford’s history in the leather industry. We discussed how artists today face many challenges and the opportunity that this Labour Government have to support our creative industries as a way of building community and supporting our local economies.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for putting such a shine on Staffordshire, and she is right about the creative industries. It is important that those skills of our forefathers—our grandfathers and fathers—are passed on, but I feel that they are being lost. Does she agree that the Government should step in to ensure that a training system is in place so that those skills are not lost?

Bank Resolution (Recapitalisation) Bill [Lords]

Jim Shannon Excerpts

Report stage
Thursday 24th April 2025 Commons Chamber

I reiterate the Government’s clear, strong support for the credit union sector. We continue to engage regularly with the sector to understand the barriers it faces to being able to grow and compete.

[Jim Shannon (Strangford) (DUP)]

I support wholeheartedly what the Minister has said about credit unions, because credit unions have a big role to play in Northern Ireland, as they do in other parts of the United Kingdom. My concern when it comes to crises in banks is that credit unions belong to their members, but banks have a different hierarchy—they have chief executives and directors to pay. I believe it is unfair for bankers to retain their bonuses while the pensioner who has saved his pennies all his life suffers. No matter what the crisis is, the executives still get their dividends and bonuses. I have a simple question: within this legislation and the rules we have here, can we be assured that the bankers—the ones at the top who may be responsible for the banks, or certainly act responsible for them—will find that their bonuses are not delivered to them?

[Emma Reynolds]

The hon. Gentleman draws me on something that is not pertinent to the amendments, but I understand why he has asked the question. When a bank fails, there is a hierarchy of creditors. I can write to him with that hierarchy, as I do not have it in my head at the moment. The hierarchy ensures that if, for example, the bank is bailed in, those who have already invested in the bank become stakeholders, although it depends on the resolution scenario and where they are in that process. The people who have deposits in the bank—in more simple language, people who have bank accounts—are protected up to £85,000. Soon that will increase in the way that the shadow Minister suggested.

Amendments 1 and 3 in the names of shadow Minister, the hon. Member for Wyre Forest, and the hon. Member for Wokingham respectively both relate to the scope of the Bill, which has been discussed at length during the Bill’s passage through this House and in the other place. The Government’s position remains that the mechanism in the Bill is not intended to support the resolution of the largest banks. The hon. Member for Wyre Forest set that out in his speech, as did the hon. Member for Wokingham. The largest banks will continue to be required to hold MREL to self-insure against their own failure. For banks that are required to hold MREL, the Bank of England should in the first instance use those resources to recapitalise such a firm in resolution rather than resorting to the new mechanism in the Bill. It is right that shareholders and investors in the firm should bear losses before anyone else, which goes to the point made by the hon. Member for Strangford (Jim Shannon).

I return to the primary purpose of the Bill, which is to protect the taxpayer. Bank failures are by their nature highly unpredictable, as my hon. Friend the Member for Hendon said. In the unlikely circumstances where a top-up is needed to resolve a bank once all its MREL resources have been used, hon. Members must consider whether they want those costs to be borne by the taxpayer. It is the Government’s belief that the taxpayer should not be on the hook for those costs.

I made the point in Committee, and do so again today, that safeguards are in place to prevent inappropriate use of the mechanism. The Treasury, for example, is involved in the exercise of any resolution powers through being consulted about whether conditions for resolution have been met. It would also need to approve any resolution action with implications for public funds. If the Bank of England requested a large sum from the Financial Services Compensation Scheme that the scheme could not provide through its own resources, additional amounts would need to be borrowed from the Treasury and would therefore require the Treasury’s approval. Therefore, in practice, Treasury consent would be required if the Bank of England had requested a large sum.

The shadow Minister attempted to draw me into many different subjects related to MREL. You rightly reminded him, Madam Deputy Speaker, of the scope of the Bill and the amendments under discussion. I will always be happy to have those discussions with him—as he knows, the Bank of England recently consulted on the thresholds—and I note what he said before he was called to order. He also tried to draw me into questions about the Financial Services Compensation Scheme, which are also for a different day; as he said, there will soon be increases.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 8th April 2025 Commons Chamber

[Darren Jones]

As every constituency MP will know, the closure of banking services on our high streets is always a difficult decision. The Government are committed to championing access by rolling out banking hubs across the country. We are committed to delivering 350 of those hubs, and 220 have already been announced. The closure of the post office that my hon. Friend mentions will trigger a further cash access assessment for her constituency. I would be pleased to arrange a meeting for her with the relevant Minister to look at the options for her constituency.

[Jim Shannon (Strangford) (DUP)]

rose—

[Mr Speaker]

Is there a Liverpool overspill in Strangford? I call Jim Shannon.

[Jim Shannon]

The Minister’s response is key. He is right to highlight the issues, whether they are in Liverpool, Everton, Cardiff, Edinburgh, Belfast or Strangford. In Northern Ireland, we have made the most of over-the-shops apartment conversions as opportunities for housing. Does the Minister agree that the possibilities for the regeneration of high streets and town centres also include housing opportunities?

[Darren Jones]

We have a shared ambition to ensure that our high streets are thriving communities for the people who live, shop or work there. We are delivering an integrated settlement for combined authority mayors in England, and have delivered a real-terms increase in funding for the Northern Ireland Executive—the largest since devolution began—to invest in exactly those types of local projects.