Oral Answers to Questions
Debate between Kirsten Oswald and Anum Qaisar(1 year, 8 months ago)
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Kirsten Oswald (East Renfrewshire) (SNP)
Ms Anum Qaisar (Airdrie and Shotts) (SNP)
Bank Branch Closures
Debate between Kirsten Oswald and Anum Qaisar(2 years, 8 months ago)
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Ms Qaisar
I entirely agree. When banks decide to close, we as Members of Parliament rightly engage in meaningful discussions. We fight for our constituents and try our level best to ensure that they have access to the local branch for as long as possible. If a branch does close we will fight for those banking services, but the reality of these commercial decisions is that all too often such discussions do not end in a positive outcome for our constituents. I say to the Minister that, with only a handful of banks on our high streets, now is the time for Government intervention. The banking issues that my constituents are facing will affect people in all four nations. I would welcome the Minister’s comments on what work she plans to do to ensure that our high streets do not become banking ghost towns.
Kirsten Oswald (East Renfrewshire) (SNP)
My hon. Friend said that there was “meaningful” engagement between MPs and the banks. It may be meaningful on one side—indeed, I know that it is—but it certainly does not appear to be meaningful on the other. The lack of proper consultation between the banks, the communities and their representatives is particularly unhelpful at a time when the banks are abandoning so many of our high streets.
Ms Qaisar
I completely agree with my hon. Friend.
In 2018, a Scottish parliamentary inquiry into the impact of bank branch closures on local businesses, consumers and the Scottish economy highlighted a number of concerns. It stuck out to me that Pete Cheema of the Scottish Grocers Federation said:
“We need to go back and talk to the banks. It is very clear that the decisions are being made in London. Up and down the UK, 600 branches have closed, but part of Wales, the whole of Scotland and bits of the south-west of England have suffered the most. We need to take that in context; I wonder sometimes whether the banks understand Scotland’s landscape.”
Evidence from Which? indicated
“there are 130 ‘cash deserts’ in Scotland (places where there is no access to either a branch or an ATM within a reasonable distance).”
Ms Qaisar
I will make some progress.
Banks are so much more than simply a place to deal with money. Age Scotland has argued:
“For many older people, going to the bank…gets them out of the house… This is an important component in addressing the…effects of loneliness”.
The stark reality is that bank branch closures deny vulnerable communities their right to independent living.
Face-to-face banking must not be lost. Will the Minister clarify what work she is doing to ensure the social inclusion aspect of banking is not lost for those who need it? Bank branch closures affect around 20% of small businesses with a turnover below £2 million, as they often use branches as their primary means of banking.
I remember working part time in retail as a university student and having to jump over to the bank with the takings of the day or to ensure we had enough petty cash in the register. Such access to banking and cash is vital, especially if we want to ensure that small businesses continue to hold a place on our high streets.
Ms Qaisar
I will make some progress, if my hon. Friend does not mind. [Interruption.] I am trying to be polite, Mr Deputy Speaker.
The concerns I have outlined also apply to charities and trusts, which often heavily rely on cash donations and payments. There is a security risk to volunteers, causing additional pressure, if they have to travel a distance to an alternative branch.