Royal Bank of Scotland Branch Closures

Michael Shanks Excerpts

Tuesday 14th May 2024 Westminster Hall

[Deidre Brock]

Yes, the hon. Gentleman is quite right, and there are delays around those hubs, which I will reference later in my speech.

Research from Which? Found that 65% of consumers would find life difficult without the option to access their bank branch. Age UK says that four out of 10 over-65s do not manage their money online. We also know that paper documents are just preferred by many people, and can help them keep track of their finances better.

[Michael Shanks (Rutherglen and Hamilton West) (Lab)]

I thank the hon. Lady for bringing the debate, and for being incredibly generous in giving way so much during a half-hour debate. She has mentioned selective statistics being spun. The Rutherglen branch is also earmarked for closure. I stood outside it and heard, particularly from older people, that they were being told to go into the branch to use the app. This then generated statistics to make it appear as though people were transferring from using physical tools to digital tools, even though they had gone into the branch. Does the hon. Lady agree that the problem is that the bank has been dressing up statistics about branch use to try to sell the argument that it should close the branch?

[Hon. Members]

Hear, hear.

--- Later in debate ---

[Bim Afolami]

I thank the hon. Lady for her point. On the notification of closures, banks and building societies are required to provide customers with at least 12 weeks’ notice, a summary of the firm’s analysis of customer needs —including those who use the branch—and information on how to continue accessing services after the closure. Firms should also provide the support that customers will need to transition to channels such as digital or telephone services. I want to be clear that the support is not just saying, “You need to go and do this.” Firms are meant to provide support, and the impact of any planned closures on their customers must be carefully considered. Any firm that does not adhere to that is not doing its duty.

[Michael Shanks]

I wonder if the Minister could look at the statistics, because I think some of the statistics used by the banks have been quite misleading. On the question of banking hubs, we have one in Cambuslang in my constituency, which is a fantastic resource, but it is there because all the banks closed. When the Royal Bank of Scotland in Rutherglen closes, I want to avoid all the other branches closing. Banking hubs are a useful tool to have in the community, but does the Minister agree that keeping the branches open would be even better for people?

[Bim Afolami]

The answer is that sometimes keeping branches open makes sense and sometimes it does not. I cannot say from the Dispatch Box that in every instance it is right to keep all branches open, because the rate at which people are moving online is very rapid. Sometimes it does not make sense, but sometimes of course it does. It is that judgment that the firms have to make independently and commercially. We do not want to live in a world where Government Ministers determine which branches close and open across the country—I do not think that is sensible. It is important that those are independent commercial decisions.