Banking Services: Rural Northumberland

Debate between Joe Morris and David Smith

Monday 2nd September 2024 Commons Chamber

[Joe Morris]

I agree with my hon. Friend, and I thank her for giving me an unintended promotion. It may seem like we are just saying names on a map, but consider the vast scale of my constituency in our wonderful county of Northumberland. These places are separated by huge distances, and have a public transport system that does not always seem to work as it should. It is simply not fair that vulnerable people in my constituency are forced to travel for as long as an hour by car or 90 minutes by public transport, either way. It is unfair to expect our constituents to put up with a second-class service because they live rurally. Unfortunately that has been the case in large parts of our county. It is incredibly important that we address these issues.

We all recognise that many of these communities, particularly in my constituency and in that of my hon. Friend the Member for North Northumberland (David Smith), have historically voted Conservative, but they put their faith in the Labour party for the first time at the last election. We were elected to deliver meaningful change for our constituencies. I applied for this debate having spent my time as a candidate listening to the concerns of people across the constituency, but there is one area I wish to highlight. In Haltwhistle, and the towns and villages around it, the loss of Barclays last year is still damaging the local economy. I have been in touch with the chair of Haltwhistle chamber of trade, Ian Dommett, who told me directly that the loss of banking facilities in rural towns such as Haltwhistle has had a negative effect on every business. His members have been affected; most had accounts at Barclays because of its presence in the town.

The replacement of an active branch with a peripatetic community hub has removed the relationship between business and branch. Many businesses deal in cash—Ian’s business is a bed and breakfast, with many guests paying in cash, and a lot of Haltwhistle’s passing trade is from tourist spend on Hadrian’s wall—but they have lost the ability to pay directly into the bank, with the nearest Barclays’ branch being 20 miles away. Haltwhistle businesses say that the bank has simply told them to use the post office, a separate business over which it has no control.

[David Smith (North Northumberland) (Lab)]

I thank my hon. Friend for securing the debate on an issue that is important in both his constituency and mine. I draw attention to the correlated issue of post offices. In Wooler in North Northumberland, where there are no bank branches, the post office, which provides the only banking services for that community, is also at risk of closure. Thankfully, an incredible community response, led by the Glendale Gateway Trust, is fighting to retain it. I will do everything in my power, too. Does my hon. Friend agree that banking hubs more generally, and the Post Office specifically, must be part of the solution to the lack of access to banking services in Northumberland?

[Joe Morris]

I completely agree with my hon. Friend. For many businesses and constituents, the post office represents a lifeline, albeit one that unfortunately for many businesses is accessed far too infrequently to operate with security. The decision to close rural branches is taken in head offices, with little or no understanding of the rural economy and the impact that such decisions have on our constituents, their businesses and their daily lives.