Bank Closures: Rural Areas

Luke Myer Excerpts

Monday 24th February 2025 Commons Chamber

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

rose—

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

rose—

[Simon Hoare]

Let me make a little progress and I will give way first to my hon. Friend and then to the hon. Gentleman.

At the heart of everything this place does, we must think about social inclusion and trying to deliver services that meet the needs of a wide range of our population. According to Age UK, four in 10 adults over the age of 65 do not bank online, and three quarters of those who are over 65 have expressed the very clear desire that they wish to bank in person. The over-80s, people with disabilities and those on low incomes disproportionately want physical facilities, and yet they are being denied them.

As the Royal National Institute of Blind People points out, in my constituency alone there are, I think, 4,170 constituents who are either blind or partially sighted. They are unable to conduct banking online. Why are we excluding them from the personal management of their financial affairs?

--- Later in debate ---

[Simon Hoare]

Let me just finish this point.

That was the first promise, but it seemed to disappear quite quickly. Then the Post Office came in, and then there seemed to be an over-reliance on building societies. I notice that Nationwide—I think it is Nationwide; I could be wrong—is saying in its television advertisement that it pledges not to close a branch before 2028, but it is under exactly the same cost and other pressures as its high street competitors.

Then we were told that the answer to the maiden’s prayer was going to be the banking hub, but there has been quite a lot of disappointment surrounding that. I suggest to the Minister that that is in part to do with the erroneous conflation of access to cash and access to banking services. Link has assessed, perfectly properly, that in Blandford there are ATMs at the local Tesco, at the local Morrison’s and at Nationwide, but just try asking an ATM to amend or set up a standing order or direct debit. A small businessman or businesswoman who wants to extend their line of credit or has a question mark over something cannot ask an ATM those questions. Saying that there is access to cash, as important as that is, is far too blunt an instrument when trying to assess the impact of these closures.

[Luke Myer]

North Dorset is quite far away from the north-east, but many of the issues the hon. Gentleman is talking about are issues that I am encountering in my constituency as well. The rural side of my constituency in East Cleveland contains many villages and towns with high deprivation and high rurality, and I am endeavouring to get a banking hub in one of those towns that has lost access to banks over many years. Does he agree that deprivation needs to be included as a metric alongside rurality?

[Simon Hoare]

I agree absolutely. A more sensitive and refined definition of the hub-and-spoke model is also needed. If we look at the resident catchment of a market town, we can construct a compelling argument that a proposal for a hub does not stack up, but we must add in the thousands of people who live in the villages that look to it and are magnetised to it, and who will spend more money in those businesses, and the businesses themselves—not just individuals—who use those businesses.