Banking Hubs

Rachel Blake Excerpts

Wednesday 20th May 2026 Commons Chamber

[The Economic Secretary to the Treasury (Rachel Blake)]

I am grateful to the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for securing this debate and for setting out the concerns of not only of his constituents but, as he made clear, those of the many Members who are in the Chamber this evening who want to talk about this topic. I congratulate him on gathering people from across the country and from across different political persuasions to talk about access to banking services—I know how important it is to people.

Let me start by acknowledging the important work done on this issue by my predecessor, my hon. and learned Friend the Member for Northampton North (Lucy Rigby), particularly in relation to the announcement of the independent review on access to banking services and the Financial Services and Markets Bill, which was introduced yesterday. I will return to that later in my speech—in fact, I will probably be referring most hon. Members’ interventions to the access to banking services review.

[Liam Conlon (Beckenham and Penge) (Lab)]

The Minister mentioned interventions, so I congratulate her and welcome her to her place.

I welcome this Government’s commitment to ensuring that people up and down the country have access to banking services. In my constituency, Mr Jignesh Patel has made an excellent application to open a banking hub in his post office in Anerley, with the support of local Labour councillors for Crystal Palace and Anerley as well as residents. With an experienced team already handling sensitive financial transactions daily and existing infrastructure already in place, his post office is fully equipped to deliver a banking hub with minimal disruption. Does the Minister agree that the application process must ensure that the merits of excellent applications such as that of Mr Jignesh Patel are fully considered, giving him and others the best chance of success?

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[Rachel Blake]

I thank my hon. Friend for his thoughtful intervention, and I wish local businesses in his constituency all the best. These decisions are made by Link, but the Government keep a very close eye on the assessment criteria.

[Linsey Farnsworth (Amber Valley) (Lab)]

I want to bring a bit of good news to the House. Last month, I had the honour of cutting the ribbon on a new banking hub on Oxford Street in Ripley. It is an important facility for my constituents, but it is actually the first of its kind. It did not go through the Link procedure; it was identified as a site by Cash Access UK. It is run by and staffed entirely by Cash Access UK, so a continuing team is involved there. Will the Minister recognise the great achievement of Cash Access UK in my town and the importance of similar banking hubs across the country?

[Rachel Blake]

I absolutely recognise the importance of banking hubs, as my hon. Friend has described. I am very grateful to her for highlighting the different models available, and I very much hope that she will submit some of that evidence and the case study to the access to banking services review.

I am particularly struck by the reflections of hon. Members on the importance of banking services for those who are vulnerable, and the importance of banking services in urban and rural communities and how they have been lost.

[David Reed (Exmouth and Exeter East) (Con)]

I welcome the Minister to her new role.

On the criteria, I have pushed for a banking hub in Budleigh Salterton for a great deal of time, but it was pushed back because there is a post office in the town. The post office was closed for 10 weeks last year, and the surrounding rural villages—places such as East Budleigh, Otterton and Colaton Raleigh—were starved of cash. Will the Minister meet with me to look at the criteria that Link has put in place around the post office’s suitability to see if we can get that overturned?

[Rachel Blake]

I would absolutely be happy to meet with the hon. Member to talk about that issue. I hope to meet with Members from across the House about the access to banking services review.

[Feryal Clark (Enfield North) (Lab)]

I welcome the Minister to her place.

My constituency was one of the lucky ones that was awarded a banking hub two years ago, and I worked with Cash Access UK to secure a temporary place in the council library. Two years on, it has failed to secure an accessible permanent site and is refusing to engage with me. Will the review also look into the delivery of commitments by Cash Access UK?

[Rachel Blake]

I thank my hon. Friend for her contribution, and I hope that we can discuss it during the review.

[Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)]

I have had the pleasure of opening two banking hubs, in Rossington and in Thorne, and have seen the success that they have brought to the area. However, I also have the Isle of Axholme—a rural area—in my constituency, and access to cash is really important for financial inclusion, local businesses, and the resilience of our rural communities. Will the review take that into account?

[Rachel Blake]

My hon. Friend makes important points about access to banking services across a number of different areas. I am grateful to him, and I hope we can continue to discuss this issue.

We now have very little time left—

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

On that point, will the Minister give way? [Laughter.]

[Rachel Blake]

I will.

[Dave Doogan]

I am grateful to the Minister for giving way. Could she give my constituents some comfort that after the review—I am certain it will find that the current criteria set out for Link by the FCA are deeply flawed and exist in a random, abstract form that bears no resemblance to local people’s circumstances—places such as Pitlochry will be able to revisit Link and the FCA’s flawed decisions?

[Rachel Blake]

I disagree—I think that the hon. Gentleman goes too far in his criticism of the criteria. It is important that the Government continue to monitor how these banking hubs are assessed and the need for them.

I will close by talking about—

[Suella Braverman (Fareham and Waterlooville) (Reform)]

Will the Minister give way?

[Rachel Blake]

I am going to make a little bit of progress now, because we do not have much time. Despite the important progress that we have heard this evening about the number of banking hubs that have been set up—a commitment to 275 with 235 already delivered—it would be premature to conclude that all people and communities are receiving support with their banking needs. Decisions to close bank branches are ultimately commercial decisions taken by banks and building societies, and reflect some of the changes in the way people choose to bank.

[Suella Braverman]

Will the Minister give way?

[Rachel Blake]

I have to finish now. I welcome the commitments that firms have made to maintain or improve their existing branches, recognising just how important they are to their customers. There are already some rules and obligations for firms that are changing their branch networks, which they must take very seriously. All Members should know that those decisions must be taken with regard to the impact on customers and communities. I underline that banks and building societies are expected to put appropriate alternatives in place ahead of closure, and where they fall short of those expectations, the FCA can and will ask for closures to be paused.

[Suella Braverman]

Will the Minister give way?

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[Rachel Blake]

I am not going to give way. I fully support those powers, and expect the FCA to use them where necessary. However, the Government are concerned that although firms have been reshaping their branch networks in response to customer demand, this may be creating particular challenges, which is why we have brought forward the review.

The Government recognise how important it is that communities such as those represented by the hon. Member for Moray West, Nairn and Strathspey and many other Members from all parts of the country have sufficient access to cash and banking services. Banks and building societies are a core part of the everyday economy. It is critical that communities have sufficient access to those important services. I am sure that many Members from across the House agree with that, and I look forward to working with them on the access to banking services review.

Question put and agreed to.