High Street Banks

Lord Shutt of Greetland Excerpts

Wednesday 19th December 2018 Lords Chamber

[Lord Bates]

I thank the noble Lord for his question. As for the situation in Sowerby Bridge, he will be pleased to know that there is now a much tougher access to banking standard, which was set up by UK Finance following a review by Professor Griggs, and requires impact assessments to be undertaken. He will further be able to reassure the resident of Sowerby Bridge that she has access to the Post Office network—some 11,500 outlets—and that as a result of the banking framework agreement now in place, 99% of personal banking services, and 95% of the small business banking services to which she referred, can now be transacted through the Post Office in Sowerby Bridge. I hope that that will bring some reassurance, and even festive cheer, to the noble Lord and to the bakery concerned.

[Lord Shutt of Greetland (LD)]

My Lords, the nearest town to Greetland is Elland. We did have six banks; we now have none. Just up the Calder Valley, as the noble Lord has said, are Sowerby Bridge and Hebden Bridge; they are in the same position. Real hardship to customers, retail businesses and small businesses is a fact. The mighty banks should not treat their loyal customers with such disdain. If I may comment on what the Minister said—

[Noble Lords]

Oh!

[Lord Shutt of Greetland]

It will be a question, do not worry.

There is a mighty Act, the Financial Services and Markets Act 2000, which is over 300 pages long. Although it makes no reference to branches, there is a regulation-making power in Section 426. I put it to the Minister: could an order be laid authorising the Financial Conduct Authority to give due regard to the need for banks to give proper branch services to towns and communities without banks?

[Lord Bates]

Fair banking principles are upheld currently by the Financial Conduct Authority. I come back to the point that the access to banking standard is now in place, and has been in place since last year. It requires much greater consideration and consultation before branches are closed. Alongside that, the Government have been investing in the Post Office network to the extent of some £2 billion since 2010. Those two factors will, I believe, help address the majority of concerns.