Royal Bank of Scotland Branch Closures

Debate between Sarah Dyke and Bim Afolami

Tuesday 14th May 2024 Westminster Hall

[Bim Afolami]

I am very happy to speak with the hon. Lady about the challenges that Northern Ireland has in this regard—the statistic she outlined speaks for itself. In relation to the criteria, this is an industry-led set of rules—the Government do not determine which banks’ branches open or shut—but there is definitely much more work that we can do, working with the industry, to see whether we can improve things.

The industry has come out, through UK Finance, and said that, over the next 18 months, more than 225 banking hubs will be opened. That will mean a rapid increase in the speed at which banking hubs will open compared with recent years, and the industry is committed to that. However, I am very happy to have a conversation with the hon. Lady about Northern Ireland in particular.

To respond to the hon. Member for Edinburgh North and Leith regarding the Equality Act 2010, like all service providers, banks and building societies are indeed bound by the Act, and it is not our judgment that they have somehow contravened it. They are bound to make reasonable adjustments, where necessary, in the way that they deliver their services.

In the time remaining to me, I would like to talk a little bit about banking hubs in particular, because I think they have been a unique proposition and have proved, in most cases, very popular where they have appeared. The issue has been, “Let’s get them faster and let’s have more of them.”

[Sarah Dyke]

I have already mentioned that, in my constituency, many banks have been closing and many market towns have been left without a bank, but many businesses are also really concerned about the lack of banks in their areas. People still want to use cash, and businesses are still taking cash, but they now need to travel many miles across the constituency at the end of the working day to deposit their cash safely. Will the Minister comment on how his Department proposes to manage the negative impacts on some of our vibrant businesses—such as those in my constituency—that make up our villages and towns, which will now have to travel much further to deposit their cash safely?

[Bim Afolami]

My response is, in part, to repeat what I have already said, which is that we were the first Government to legislate on access to cash in law, through the Financial Services and Markets Act 2023. That sets out that people should be no more than three miles away from access to cash. In relation to banking hubs and the ability of small businesses to use bank branches or a banking hub, that is why banking hubs are so important. These hubs help people and businesses to withdraw and deposit cash, pay in cheques, and check their balances through the post office counter. They also provide a community banker who can help people with wider banking services, from making a transfer to providing support for fraud and scam victims.

The hubs are deployed by Cash Access UK—the company owned and funded by nine major high street banking providers—in response to an assessment of the community’s cash needs by Link, the co-ordinating body that sets the criteria. As I have already explained, I think that in many instances that criterion needs to be changed by the industry, and I hope that it will do so. To ensure that there is no gap in the provision of services, industry has committed that, if a hub is recommended, it will not close the branch that it replaces for up to 12 months, until that hub is open. If there is a delay beyond that, a temporary hub will be put in its place.