Bank Closures and Banking Hubs

Lisa Smart Excerpts

Thursday 5th June 2025 Commons Chamber

[Jo Platt (Leigh and Atherton) (Lab/Co-op)]

I thank my hon. Friend the Member for Blyth and Ashington (Ian Lavery) for bringing this really important debate to this House, and I think we speak with one voice on this particular issue. We both represent post-industrial towns, and we can both see the decline of our high streets.

Banks have long been pillars of our high street in supporting local businesses, sustaining jobs, and driving regional growth and economic stability. In an increasingly digital age of contactless payments and banking apps, it is easy to underestimate the value of physical bank branches in our town centres. With the ongoing closure of trusted high street banks, many communities are being left isolated and underserved, so banking hubs can provide vital in-person services, particularly for older residents, those with long-term health conditions and people at risk of economic abuse. I feel that we need to speak further about this subject and I will write to the Minister, because economic abuse and financial inclusion are really big issues.

Organisations such as Link play a key role in supporting the transition to a digital economy, having committed to ensuring 98% of people have reasonable access to free cash services. However, this commitment does not go far enough for areas such as Atherton and Golborne—two places with ageing populations, active local businesses and expanding communities. In Golborne, 18.6% of residents are over 65, the second-highest area in the Wigan borough. Atherton, with a busy train station and a thriving night-time economy, still has no remaining bank. Significant housing developments in both areas are further increasing demand for financial services, yet the infrastructure continues to shrink. Atherton residents often travel to Leigh for banking, leaving their own town centre with declining footfall and empty retail units. Although evidence-based proposals for banking hubs have been made, recent Link assessments did not recommend any new cash services in our area, leaving people excluded and unheard. Will the Minister confirm whether the Government are reviewing the assessment process to ensure that such communities are properly heard and their needs fully met?

In looking to the future, I urge the Government to consider the inclusion of credit unions, a co-operative model of banking such as the Unify credit union in my constituency, as part of their wider financial inclusion strategy.

[Lisa Smart (Hazel Grove) (LD)]

A point that has not yet been made is the importance of credit unions and access to responsible lending. One thing that people can do at a high street bank but cannot do at a banking hub is get a loan, so I am grateful to the hon. Member for mentioning credit unions. In my area, Nationwide on the A6 in Hazel Grove has shut, which is having a massive impact on what people can do beyond access to cash.

[Jo Platt]

I agree with the hon. Member, and Unify credit union in my constituency does give out loans in an ethical way to community organisations and people who are struggling.

Banking hubs are not just about financial transactions; they are also about sustaining the health, growth and regeneration of our towns. Let us ensure that we are protecting the digitally excluded, supporting the financially vulnerable and doing everything possible to keep our high streets alive.