Face-to-Face Banking: Rural Areas

Lizzi Collinge Excerpts

Tuesday 1st September 2026 Westminster Hall

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

It is a pleasure to serve under your chairship, Mr Wishart.

We all know that there has been a marked decline in the number of bank branches across the UK over many decades. The main message I want to get to the Minister is that the response to bank closures has focused too much on access to cash—important though that is—and not enough on the loss of face-to-face services, as my constituents know all too well. We have had bank closures in Sedbergh, and the NatWest branch in Kirkby Lonsdale closed earlier this year. It had not even been noticed that the ATM was closing, so it took far more effort than it should have done to ensure that access to cash was retained.

Face-to-face banking services offer a lifeline for vulnerable people and protection against fraud and digital exclusion. Some things are simply too complex to do over the phone or through an app. Setting up powers of attorney and delegated authority has been mentioned. Anyone who has lost a partner or a parent knows the complexity of dealing with grief—there might be a mortgage to deal with, money to transfer out of a joint account or bills to continue paying from the estate. Those processes are complicated and upsetting enough without having to explain the situation over and over again to different call centre staff or spending 20 minutes listening to hold music—sometimes people just need to sit down with a member of staff. Of course, rural inequalities compound that problem; people are told to travel to another branch, and anyone who has tried to get around Morecambe and Lunesdale on the bus will know how challenging that is.

[Leigh Ingham (Stafford) (Lab)]

This summer I did a rural tour in my constituency of Stafford, Eccleshall and the villages. Interestingly, a resident said to me that they had been directed to Stafford, where we are also getting bank closures. That is not a rural area; it is a town—quite urban. The issue they had is that their nearest bus stop was three miles away and they did not have good mobility. Where there are these interconnecting complex issues, rural communities in particular are being poorly served. Does my hon. Friend agree that we must consider access to proper local transport when making these recommendations?

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[Lizzi Collinge]

My hon. Friend is absolutely right. I also know that other Members present struggle with broadband access. We are blessed in Morecambe and Lunesdale with Broadband for the Rural North, but that interplay of complex situations can make life so hard for people when they lose their bank branch. In Morecambe, which is a town, we did get a banking hub—I helped to secure it after the shutdown of the Halifax. I think it is working well, but, again, even in a town it cannot provide everything that is needed, although I really do appreciate it.

Online banking is convenient for many people, but it does not work for everyone and everything; people still need face-to-face services like hubs or mobile banks. Services need to be reliable. The people of Sedbergh could tell us what an unreliable bank bus does to a town. I encourage the Minister to continue working closely with rural MPs on the issue, and I say gently that access to cash is not the be all and end all.