Oral Answers to Questions

John Glen Excerpts

Tuesday 1st October 2019 Commons Chamber

[The Economic Secretary to the Treasury (John Glen)]

The UK has an extensive and internationally enviable free ATM network. We know that many people still use cash day to day, and we have committed to safeguarding cash for those who need it. I am delighted that UK Finance and LINK are leading industry efforts to protect free cash access. That culminated in UK Finance launching the Community Access to Cash initiative just yesterday.

[Mrs Hodgson]

The Minister says that, but news that NoteMachine is to convert 3,000 of its 7,000 free-to-use cash machines to pay-to-use machines is of great concern to my constituents. According to Which?, we have lost 15% of our free-to-use ATMs over the past year alone. The previous Labour Government formed an agreement with ATM operators and the Treasury to plug gaps in financially deprived areas where people had to pay to access their cash, so what are this Government going to do to prevent people being charged just for trying to access their own money?

[John Glen]

Use of cash has reduced significantly faster than expected over the past 10 years. I am meeting UK Finance and LINK tomorrow to ensure that their mechanism is good for the current situation. The new initiative to which I referred in my previous response will give communities up and down the country the opportunity to engage with UK Finance on better and new solutions.

[Several hon. Members rose—]

[Sir Gary Streeter (South West Devon) (Con)]

Is not the closure of ATMs linked to the decision by high street banks to close their branches left, right and centre? Will the Minister, in his regular meetings with the chief executives of high street banks, remind them that they do have some duty to elderly customers and small businesses?

[John Glen]

I do that regularly. We are also trying to ensure that the transfer of responsibility to the Post Office runs smoothly, because 99% of people live within 1 mile of a post office, so it is a very good alternative for the vast majority of their banking services.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Hull’s high street is still very cash-reliant, and I am really worried about the blow that this reduction will give to an already struggling high street. Will the Economic Secretary please speak directly to the Payment Systems Regulator about what further measures can be taken to prevent the reduction in free-to-access cash machines?

[John Glen]

Yes, I am very happy to continue to engage with the regulator, and I noted the hon. Lady’s urgent question application earlier today. Digital payment alternatives improve local cash recycling and support cashback initiatives. Mastercard and Visa have a number of initiatives under way, and I am determined to see progress in this area.

[Mr Philip Dunne (Ludlow) (Con)]

With a third of banks, many of which had ATMs, closing in rural areas, and with very poor mobile connectivity in those areas meaning that digital payment schemes are not possible, I was very pleased to learn of yesterday’s announcement by UK Finance on Community Access to Cash, to which the Economic Secretary referred. That is the way forward, but what can he do to reassure business providers that if they provide ATMs, they will be safe from break-in?

[John Glen]

We have to ensure that there is a wide range of options in rural areas. A number of trials are under way to provide solutions, underpinned by the investment in gigabit infrastructure that my right hon. Friend the Chancellor announced yesterday, which will ensure that we have even better connectivity in remote rural areas.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

7. What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on the adequacy of funding allocated to tackling rough sleeping.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

I welcome the introduction of the new business banking resolution service that will start to hear cases of historical problems later this year. In the previous Chancellor’s letter of 19 January, he stated that that scheme should carefully consider all cases that come before it. How is that possible when the research of the all-party parliamentary group on fair business banking determined that 85% of cases are excluded?

[The Economic Secretary to the Treasury (John Glen)]

I thank my hon. Friend for his question. He is a powerful advocate for this redress scheme and I thank him for the work that he has done. In our conversation on 10 September, I reiterated the Government’s position that the scheme should not reopen complaints that have sometimes gone multiple times through the courts, but I welcome the fact that the new scheme will give access to 99% of those claims going forward, and I will continue to engage with him where I can to provide solutions on individual cases.

[Sarah Jones (Croydon Central) (Lab)]

T6. Westfield and Hammerson are due to build a new shopping centre in my constituency. Westfield has been bought by Unibail-Rodamco, which is a large French developer, and it has concerns about the state of retail and Brexit, obviously. The previous Chancellor had just agreed to meet the chief exec of Unibail-Rodamco. Will the current Chancellor honour that commitment and meet them?