Face-to-Face Banking: Rural Areas

Torcuil Crichton Excerpts

Tuesday 1st September 2026 Westminster Hall

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Wishart. I thank the hon. Member for South Devon (Caroline Voaden) for raising this important issue, and I welcome Members back after a long summer. First, I have a holiday confession: I spent a week in Spain without touching a euro or a cent—not that I made my partner pay for everything; I just used a digital app. On my return, there was that quaint item in the post: a cheque, which I banked yesterday using a digital app.

The truth is that we are using banks and handling cash less and less, but that does not mean that communities like mine in the Western Isles do not need banking services. This summer, the Bank of Scotland branch in Benbecula in my constituency closed its doors. That followed the closure of branches in Harris and in the port town of Lochmaddy. Those closures have raised concerns about banking services across the islands and in other parts of rural Scotland. My constituents cannot simply drive to the next bank, because it is across the sea on the mainland. In passing, I pay tribute to the mobile banking service, the bank van, which the RBS is still providing in the islands and other parts of Scotland.

The closure of banking services has profound effects on islands, because another truth is that communities in my constituency, particularly in Uist, face a stark depopulation crisis. There is an ageing population and economically active families are being pushed away by unaffordable housing, lack of childcare and lack of digital and physical connectivity, with failing ferries and unaffordable air fares. Without correction, we will lose not just people but communities. Banking services, as well as housing and a growing economy, have to be part of the jigsaw to retain populations.

In cash-heavy local economies, the loss of any branch is important. That is why I welcome the banking services review, but remind Ministers that they must move quickly and make sure that the approach is not one size fits all. Rural and island areas like mine rely on these vital services. Under the rules, an area should have a population of 10,000 to have a banking hub, but the population of Uist is 4,500. We need flexibility in the banking review because one size does not fit all.

--- Later in debate ---

[Lucy Rigby]

I do not want to prejudge the way that we will deal with the conclusions of the review. In response to one of the questions that I was asked, I can say that the Lloyd review’s results and report will be published next month. We can expect it in that timeframe.

The Government’s commitment is further reflected in our support for the roll-out of 350 banking hubs by the end of this Parliament. I am pleased to report that we continue to make real progress against that target. More than 280 banking hubs have been announced, and 240 are already open. As hon. Members know, they provide assisted cash services and allow customers to receive face-to-face support from community bankers representing individual banks. I very much welcome the progress that has been made on the roll-out and on expanding the services available via the hubs. Community banker services now more closely resemble those of traditional branches.

[Torcuil Crichton]

Island communities like mine simply do not fit the parameters of banking hubs. The population of Uist, for example, is half the size of that required for a banking hub. Will the Minister consider island solutions in the roll-out of new banking hubs?