Banking Services: Rural Northumberland

Debate between Tulip Siddiq and Adam Jogee

Monday 2nd September 2024 Commons Chamber

[Tulip Siddiq]

No Adjournment debate would be complete without an intervention from the hon. Member, so I am glad he intervened; I was waiting for him to do so. I share his frustration about the slowness of the roll-out—I pushed for it when I was in opposition and asked why it was taking so long. I will address this point in my speech, but I can reassure him that with as much influence as I have in our office, we have been asking for the banking hubs to be set up and ready. We are hoping to achieve 100 banking hubs by the end of this year, but I am conscious that they take a long time to set up. It is to do with the planning process, but that is not an excuse. I would like to speed up the roll-out, because I feel it has been dragging on for a long time. I absolutely share his frustration.

As the hon. Member might know, 60 banking hubs have already opened. As I said, we anticipate that 100 will be open at the end of this year, but I agree that it is frustrating to have to wait and watch. We want them to be up and running so that our constituents can make good use of them. We want to ensure that the hubs mean that people and businesses can withdraw and deposit cash, because we know that people still use it. They will deposit cheques, pay bills and make balance inquiries. They will also contain dedicated community bankers from the largest banks in the area on a rotating basis, to help people and businesses carry out wider banking services.

The decisions on the locations of future banking hubs will be made by LINK, which is the banking industry’s cash co-ordinating body. It will consider criteria such as population size, the number of retailers in the community and the availability of alternative bank branches. Communities can ask LINK to carry out an assessment of the local area; I urge my hon. Friends the Members for Blyth and Ashington (Ian Lavery) and for Hexham to make to LINK the case that has so convincingly been made to me. At the end of the day, we have asked it to make the decisions, but I can help in the process as well.

Looking forward, I expect the banks to consider carefully whether the needs of a local community are being adequately served when thought is given to where the banking hubs should be rolled out. However, I also want the industry to ensure that the range and quality of banking services provided in hubs are delivering for customers up and down the country. There is no point in having a banking hub if it does not meet the specific requirements of the town.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

I welcome the Minister to her place. If you will indulge me, Madam Deputy Speaker, I suspect that the Minister will want to note, as I do, the passing of Nicky Gavron, who was a Deputy Mayor of London, a very good friend of mine and a constituent of the Minister’s. She died on 30 August, and I wanted to ensure that it was acknowledged in the House.

I congratulate my hon. Friend the Member for Hexham (Joe Morris) on securing this important debate, in which I have two quick questions to put to the Minister. First, will she outline what conversations she has had with the banks to ensure that they put people over profit? I am very proud to represent Newcastle-under-Lyme. I know that she has not visited; if she had, she would agree that it is the most beautiful place in our country. Secondly, how can we ensure that the importance of accessibility is acknowledged not just in words but in deeds?

[Tulip Siddiq]

I thank my hon. Friend for his intervention and associate myself with his comments about Nicky Gavron, who was my constituent and a great friend. She worked with us in London Labour when my hon. Friend was—dare I say it—a very young man. We worked with her for many years, and it was very sad to see her go.

I can assure my hon. Friend that I speak to the banks every day to ensure that they know what our values are and how we want them delivered. Beyond banking hubs, I am saying to them that communities need key banking services to ensure that they have accessibility, cash withdrawal and deposit services—particularly our local businesses and charities, which often deal in cash and need convenient ways to deposit their takings, but also everyone who uses cash to make everyday purchases.

According to UK Finance, cash remained the second most popular payment method last year, so it is not right to dismiss and question the idea that people still use cash. Overall data shows that cash coverage in the UK remains good. According to Financial Conduct Authority analysis, over 99% of the UK urban population is within one mile of a free withdrawal cashpoint, and over 98% of the UK rural population is within three miles of one. I hope that that reassures hon. Members.

However, it is important that coverage is maintained, so I welcome the FCA’s forthcoming rules on access to cash, under which designated banks and building societies will be required to assess the impact of a closure on a community’s ability to access cash. If a closure results in a gap in provision, firms will be required to put in place a new service that meets the community’s needs. That could mean a new ATM deposit service or a banking hub. Where a new service is recommended, firms will need to ensure that it is place before they are able to close the existing service, to avoid gaps emerging in access to cash. Those rules will come into force on 18 September, which I am sure will be welcomed by Members across the House.

We recognise that banking has changed through a shift towards online and mobile access, which mean that customers have more ways to access banking services conveniently and securely. Banking users have clearly taken up those opportunities; recent FCA data shows that almost nine in 10 adults bank online. However, that does not mean that everyone has the means, confidence and skills to use those services, as many hon. Friends have said. We recognise that although we live in an increasingly online world, part of the population, including in my constituency, remain digitally excluded.

As a Government, we are committed to improving connectivity and digital access for all constituents. We will continue to support the roll-out of a modernised broadband infrastructure through Project Gigabit, closing the digital divide for remote areas of Britain. The Government have already started the renewed push to reach full gigabit coverage by 2030. This month we have announced funding of £800 million to improve broadband for over 300,000 rural homes and businesses. Thinkbroadband reported in August of this year that approximately 84% of the UK can now access a gigabit-capable connection. Although the majority of premises will be covered by commercial activity or Project Gigabit, the Government are considering alternative ways to improve connectivity for the parts of the UK where that is not possible. If constituents or Members write to me, we will bear their areas in mind.

I thank everyone for their thoughtful contributions, but this will not be my last speech on this matter. I want to take my hon. Friend the Member for Hexham, and other Members who have spoken, along with me on my journey, working together with the financial services sector and the public to deliver financial services. I want to mention quickly the post office network—[Interruption.] I don’t have time, do I, Madam Deputy Speaker? You are looking at me. I will just say that the Government are committed to looking for ways to strengthen the post office network. The Secretary of State met the chair of the Post Office to discuss that and other important issues, and the Government protect the post office network by setting minimum access criteria to ensure that 99% of the UK population lives within three miles of a post office, with around 11,000 branches in the UK.

Madam Deputy Speaker, you have been very kind and allowed me a bit more time, so I will finish by thanking my hon. Friend once again—