High Street Bank Closures

Debate between Richard Foord and Alex Davies-Jones

Tuesday 28th February 2023 Commons Chamber

[Alex Davies-Jones]

I completely agree. For someone who is disabled, elderly, otherwise vulnerable or just does not have a car, the closure of bank branches can be truly devastating. Across the country, it is a similar picture. In some parts of the UK, customers are facing an astonishing 40-mile round trip just to access their bank. That is not good enough.

We all know that face-to-face access to high street banks is a vital service for the most vulnerable in our society. For many constituents who do not use the internet regularly or, in modern-day Britain, do not have reliable enough broadband, online banking is not an option. I fully appreciate that the way consumers spend money has changed and that digital payments now dominate transactions—in part, accelerated by the pandemic. That in itself is no bad thing. Making commerce easier and more convenient for customers and businesses alike should be good for our economy and our high streets. As Labour’s shadow Digital Minister, I have seen at first hand what a digitised economy that works everyone could look like.

[Richard Foord (Tiverton and Honiton) (LD)]

In addition to digital banking, what does the hon. Member think of community banking hubs, given that, in my part of Devon, Axminster lost its last bank in November and Honiton is set to lose its last bank, HSBC, this June?

[Alex Davies-Jones]

I agree with the hon. Gentleman. Community banking hubs are an answer to a problem, but they are not the only solution. We are seeing a real need for a presence on the high street, because banks support so many local businesses. A community banking hub can help customers, but it will not support local businesses and local charities, which my hon. Friend the Member for Ogmore (Chris Elmore) mentioned. That is why we desperately need some sort of presence on our high street.

Far from working for everyone, as I have mentioned, the seemingly never-ending stream of high street bank closures is leaving behind the 5 million adults who still rely on cash to a significant extent for most of their purchases. As the cost of living crisis continues to cause immense pressure for thousands of people across the country, there have been reports that cash usage has increased, not decreased, because it makes budgeting feel easier. That makes the decline of high street banks even more worrying, and risks inflicting yet more misery on vulnerable people who are already struggling.