Banking Hubs: Rural and Post-Industrial Communities

Debate between Torcuil Crichton and Ann Davies

Tuesday 24th February 2026 Westminster Hall

[Ann Davies]

Absolutely. Unfortunately, as of December last year, those post office vans no longer accept cheques. Some people of a certain generation still use cheques, but those cannot now be paid in by using a post office van, as we have in our village. Someone must physically go to a bank to pay in a cheque, which makes it very difficult for the elderly, especially given that in my area we do not have public transport either.

Removing local banking services risks deepening financial exclusion and placing additional strain on already vulnerable adults. Despite cash and in-person banking still being integral to many communities across the UK, they are becoming harder and harder to access. That is demonstrated by the number of bank closures across Wales. As the Welsh Affairs Committee has noted, the number of bank and building society branches fell from 695 in 2012 to 435 in 2022.

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

rose—

--- Later in debate ---

[Ann Davies]

Absolutely. The data is there for all.

The closures disproportionately impact less populated areas, as the distance to travel to bank branches is greater. For instance, data from 2008 to 2018 show that the greatest increases in travel distance to the nearest bank branch were in Montgomeryshire, Clwyd South, Arfon, Dwyfor Meirionnydd, and Brecon and Radnorshire. Those rural and less populated areas also tend to have older populations and less reliable internet, and experience the unique nature of rural poverty.

[Torcuil Crichton]

Will the hon. Lady give way?

[Ann Davies]

I am so sorry, but I am going to finish.

Restricting access to cash also affects many of those living in rural and post-industrial areas. As the Financial Conduct Authority has noted, digitally excluded older people, people in poor health, those with lower financial resilience and those with lower financial capability depend more on cash. We have seen that play out in my constituency, where we have recently experienced the closure of the last bank in the town of Ammanford—a Lloyds Bank on Quay Street. The closure will leave Ammanford—a town with an area population of 23,709—without a full-service bank branch. It will impact not only the town itself but the surrounding communities of Brynamman, Glanamman, Tycroes, Llandybie, Betws and the wider Amman valley.

The decision demonstrates a worrying lack of understanding of the needs of rural and post-industrial communities. For many, online banking is not an option. For example, broadband coverage in Carmarthen is significantly below national standards. Gigabit in Carmarthenshire is 41% compared with 78% in the UK. Superfast broadband is 85% compared with 96% in the UK. Those figures demonstrate that large parts of the county, including Ammanford and its surrounding villages, lack access to the high-speed internet that is required for secure and consistent digital banking. In practice, that means that online banking is unreliable or inaccessible for many households. Mobile banking apps do not function properly, especially in areas with poor signal and slow connections.

Digital alternatives cannot replace in-person services, especially for vulnerable groups such as older adults, those with disabilities and people managing complex financial needs. A significant proportion of residents are elderly, vulnerable or without access to transport, and the prospect of travelling long distances to the nearest branch is unrealistic and unjust.

I have had many constituents contact me to express their deep concern about the closure of the Lloyds branch. One constituent told me:

“We really desperately need this facility now. I don’t think any consideration has been given to the disabled, elderly, or even younger people who cannot travel to other towns. Although I understand the Post Office will absorb some customers, it does not provide all banking needs.”

He continued:

“I understand why the banks have to close some branches, but Lloyds’ support in the past has been invaluable to this area. With a brain-injured partner, it is nearly impossible to travel to Gorseinon. This would be a major trip causing unnecessary distress and anxiety for him; disabled parking in Gorseinon doesn’t meet his needs either.”

Cash has a social value, too. Another constituent said:

“I’m old school and still like to have cash—giving my grandchild pocket money, giving tips if I go out, taxis—the list could go on.”

It is clear that cash does not just facilitate economic exchange; it creates bonds and ties within communities, an aspect that is important to smaller and rural areas.

Where do we go from here? The Federation of Small Businesses Wales has said:

“While it is unrealistic to expect a return to high street banks on every street, it is important that new models are further developed—such as banking hubs—to ensure that these services are available locally.”

Banking hubs are a key alternative to communities that have lost access to bank and building society branches. They offer easy access to face-to-face cash and banking in the communities that have lost their bank branches.

I welcome that the Government have pledged to establish at least 350 banking hubs across the UK. In Wales, there are 12 shared banking hubs, with more in the process of being set up in Gorseinon and Caergybi—Holyhead. However, I note that none are in my constituency of Caerfyrddin—not one.

The Financial Services and Markets Act 2023 gave the Financial Conduct Authority responsibility for maintaining cash deposit and withdrawal access, although not wider banking services. The FCA’s rules came into force in September 2024. Those rules require banks not to close their services in communities until they have carried out an assessment showing that the closure would not impact withdrawal and deposit services in that area. Those assessments are conducted by Link.

While such a safeguard is welcome, the process itself seems to overlook rural and post-industrial areas. It does not allow for discretion to be applied to consider the needs of those communities. For instance, in the case of Ammanford, Link assessed that there was no need for additional services like a banking hub, given that Ammanford did not meet the population threshold of 10,000 people living near the high street. It said that Ammanford had 7,444 adults living nearby, which is still a significant number, but 23,709 people live in that surround. As we know, in post-industrial areas, the town merges into the villages—or the villages merge into the town.

Residents have made it clear that they are finding it incredibly challenging losing their only banking facility. A petition is being circulated in response to the decision, and it has already gathered hundreds of signatures—I urge all in the Chamber to share my online petition. I urge Link to engage with local stakeholders, including businesses, councillors and residents, to ensure that the assessment reflects actual community needs, including by establishing a banking hub in the town of Ammanford.

Can the Minister set out how the Government can accelerate the establishment of banking hubs in rural and post-industrial communities as part of their plans? What recent assessments have been made of the adequacy of the cash access review process to account for the unique needs of those communities? Banking hubs are a lifeline for communities that are already under strain. We need prudent policymaking in this area from the Government, so that constituents like mine are not overlooked for such important services. Diolch yn fawr, Cadeirydd.

Sheep Farming

Debate between Torcuil Crichton and Ann Davies

Wednesday 4th September 2024 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Dr Huq. I commend my hon. Friend the Member for Hexham (Joe Morris) for securing this debate and herding us in.

As we are gathered here today, some 4,500 sheep and lambs will be sold at the community-owned and run Lewis & Harris Auction Mart in Steinish, which is outside Stornoway in my constituency of Na h-Eileanan an Iar. The sheep will end up with finishers across the UK, and represent the culmination of a year’s work for crofters in Lewis. They also represent the deep connection that we see here today between the Hebrides and Scotland, Wales, England and Northern Ireland, which is probably best symbolised in this place by the Woolsack that the Lord Speaker sits on in the other House.

Wool and sheep are not worth as much as they used to be. I will not give you live market prices, but I know that with the main store lamb sales season in full swing prices are up. In Stornoway, prices were up by £11; in Dingwall, where Lewis lambs are sold, they were up by £6.85; and at Lochboisdale prices were up by £12. It is unfortunate that the corresponding lamb sale in Lochmaddy in North Uist has not gone ahead this year, but hopefully it may be restored. That shows the economic and cultural importance of sheep to my constituency and the Outer Hebrides.

Sheep have played and will continue to play a great role in keeping communities alive. I come from a crofting community. I grew up on a croft rearing and sheering sheep, sending them out to the moor to our common grazing land, and overwintering and feeding sheep. Ironically, the common grazing lands, which we no longer use so much for sheep, now house wind turbines that bring community profit to the tenant crofters in our area.

The crofting communities are in good shape, and they are in good shape because of sheep. Crofting is best described as small tenant farming, and it is the small tenant farmers who held together communities, towns, villages, language and culture across the whole north-west of Scotland and the islands. The backbone of crofting is, of course, sheep, but the sheep alone will not support us. The industry needs accessible and proportionate support to ensure its future.

A recent in-depth report highlighted the importance of crofting and agriculture to island economies, but it also revealed the extent of the decline in sheep farming in the Western Isles in the last 20 years. Sheep numbers in the Outer Hebrides have decreased by 52% in the last 20 years, down from nearly 300,000 to 143,000 in 2021.

[Ann Davies]

It is really interesting to hear from you when we are talking about crofting and tenant farmers. As other speakers have noted, when we are talking about access to land there is such an issue with farm business tenancies at the moment. The maximum term being offered is 10 years and the average can be as little as five to seven years.

Most tenant farmers work as well as keeping their holdings, as you will know, and over the long term, because of the incomes involved, that is unsustainable. We need an understanding and legislation that secures tenancies in the long term, offering our young farmers —we have talked about young farmers and the YFC movement—security when they start their farming careers. We do not have that at the moment with the current farm business tenancies, so we need to look at introducing legislation from this House.

[Dr Rupa Huq (in the Chair)]

Order. I appreciate that there are new Members present and not everyone may be aware of this, but I am being reminded by the Clerk that Members should not use the word “you”. “You” means me, because I am in the Chair. That is just a general reminder for all.