Face-to-Face Banking: Rural Areas

Wendy Chamberlain Excerpts

Tuesday 1st September 2026 Westminster Hall

[Wendy Chamberlain (North East Fife) (LD)]

It is a pleasure to serve under your chairship, Mr Wishart. I congratulate my hon. Friend the Member for South Devon (Caroline Voaden) on securing this debate. I am sure that many Members have had the same frustrating experiences I have had when I meet a bank that is planning to close a branch. It has all this data and statistics telling us about the number of people who use that branch, but never asks how many people would use it if they knew that they could get access to it. Link also cannot tell me why, despite the measures that are in place, the percentage of people with access to cash in my constituency continues to reduce. It is also important to remember that in many of our communities, the bank branches that do exist often have very reduced hours. Business customers in particular express real frustration to me about that.

I do not want to repeat the things that have been said today, but I want to pick up on scams and vulnerable constituents. Rural poverty is real. We all deal with it. Citizens Advice locally and food banks are seeing an increase in people’s need for support. Banks have a responsibility to improve financial literacy. In addition, rural transport is non-existent, as many people have touched on. Over the summer, I went out with a constituent who used a wheelchair. We had to take two buses to make the journey and, to add to her distress, one of the bus’s lifts was not working and the whole bus had to decant while she was left on the pavement. We need to remember that it is not always easy for people to get to banks.

I am very conscious that the party that talks about broken high streets and broken Britain is not represented in this debate, but if we think back to the past, the bank manager was someone we knew. I have a constituent who subject to a very distressing scam involving a significant amount of money. I am confident that if they had been going into their bank branch, the staff would have known them and asked the right questions to prevent the scam in the first place—it is not about the person asking for advice. The Government know what they need to do; I hope they get on and do it.

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[Sarah Dyke (Glastonbury and Somerton) (LD)]

It is a pleasure to serve with you in the chair, Mr Wishart. I congratulate my hon. Friend the Member for South Devon (Caroline Voaden) on securing this particularly important debate. The decline in face-to-face banking services is evident across the country—just visit any high street—but it is felt most acutely in rural areas. While the Government have taken steps to protect access to cash, protecting cash is not the same as protecting access to banking services. The number of bank and building society branches has declined dramatically, from 21,600 in 1986 to fewer than 6,900 in 2025, with more closures scheduled for 2026 and 2027. In rural areas, only 33% of people live within three miles of a bank branch, compared with 93% in urban areas. When bank branches are closed in rural market towns, it does not just inconvenience people, but can be the difference between a small business thriving and a small business failing.

[Wendy Chamberlain]

One of the problems we have experienced with the Link criteria is that the town is classed as urban by the Office for National Statistics, but is actually servicing a rural community. That mismatch means that some hubs are being missed out.

[Sarah Dyke]

I thank my hon. Friend for her intervention. She makes a very good point, which I wholeheartedly agree with.

Small businesses also suffer from bank closures because they are not able to deposit their takings, transfer money between accounts, manage fraud or get simple advice on opening a business account. This has a large impact on small businesses in rural areas. For local charities, closures can mean the difference between banking the proceeds of a coffee morning and not banking them at all.

This also demonstrates the impact of the rural premium that people in rural communities face when living their everyday lives. My constituency of Glastonbury and Somerton has felt the full consequences of the decline. Many market towns have lost all banking facilities already, and the Lloyds branch in Street is due to close next March. I have collected many signatures from concerned constituents who will be impacted by this change, and I have urged Lloyds—and will continue to do so—to reconsider the decision. I recognise that a community banking hub is expected to begin visiting Street from early 2027, and I welcome that effort to maintain some local presence of banking services, but let us be clear: a fortnightly visit from a community banker is not a substitute for a staffed bank branch. Of course, banking hubs and community bankers do have an important role to play, but they must be integrated as part of the conversation around banking services, rather than being the Government’s answer to it.

In addition, the Coventry Building Society branch in Wincanton will close in nine days’ time, leaving the town without any face-to-face banking services. Coventry Building Society has informed its members that they will be able to deposit their cash at their nearest branch in Frome, but that is a 40-mile round trip, so the closure will undoubtedly affect both rural local residents and local businesses, who will now need to make alternative arrangements.

Costs for Motorists

Wendy Chamberlain Excerpts

Thursday 21st May 2026 Commons Chamber

[Lucy Rigby]

Okay. One of two things is true: either the Leader of the Opposition said that she would have taken us into the conflict and she did not mean it, in which case she is really confused, frankly; or she said it and she meant it, which is demonstrative of catastrophic judgment. Neither of those things—catastrophically bad judgment or deep confusion—is an ideal quality for someone who wants to run the country.

[Wendy Chamberlain (North East Fife) (LD)]

The Government have repeatedly pointed to the fuel finder website as the best way to keep prices low through competition. Yet in my constituency costs have gone up so much that there is basically no variation between the pumps. Those high prices are crippling for everyone, but particularly for local businesses such as the fish merchants from the East Neuk, who go far and beyond North East Fife to deliver to customers directly. Driving is not avoidable for a constituency such as mine. Obviously, the Government are not looking at the Lib Dem proposals, but why do they not offer meaningful support beyond red diesel in rural constituencies? What about EV charging, for example? Often, in constituencies such as mine, people have to charge away from home because they need their car to get about the constituency.

[Lucy Rigby]

We are supporting motorists in a meaningful way and it is really important. The hon. Member mentioned the Competition and Markets Authority’s fuel finder scheme. The intention of that is to save households that own a car up to £40 a year. She is right that the key principle behind that is competition. We know that competition is the way that we get to greater choice and lower prices for consumers.

Middle East: Economic Update

Wendy Chamberlain Excerpts

Tuesday 24th March 2026 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that question. From next month, families with children will benefit from the abolition of the two-child cap in the universal credit system. We have also doubled the number of recipients of the warm home discount and put £14 billion into upgrading people’s homes through the warm homes plan. Of course, as we look at targeted support, we will consider vulnerabilities within that.

[Wendy Chamberlain (North East Fife) (LD)]

The Chancellor has mentioned several times that households will benefit from £150 off their energy bills, but I had a constituent on the phone this morning who has been told that his energy bills are still rising and will not see the savings that the Chancellor is talking about. What conversations is she having with energy companies to make sure that people do actually benefit from the fall in bills that she is so keen to talk about?

[Rachel Reeves]

I would be very happy to see the particular details of that constituent, because energy companies—through both fixed and variable tariffs—are passing on that £150 reduction that I introduced in the Budget by getting rid of the energy company obligation levy entirely and by moving other levies from bills on to general taxation. I am happy to look at the particular circumstances of that individual, but people should be getting, on average, a £117 cut in their energy bills from 1 April.

Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 10th March 2026 Commons Chamber

[Sir Ashley Fox (Bridgwater) (Con)]

2. What assessment she has made of the potential impact of changes to business rates announced in the autumn Budget 2025 on the retail, hospitality and leisure sectors.

[Wendy Chamberlain (North East Fife) (LD)]

6. What assessment she has made of the potential impact of tax changes on high street businesses.

[Dr Danny Chambers (Winchester) (LD)]

13. What assessment she has made of the potential impact of tax changes on high street businesses.

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[Wendy Chamberlain]

I recently hosted a hospitality roundtable in North East Fife. In an area that boasts such attractions as St Andrews and the East Neuk, one would expect to find an industry in rude health, but that was not the case. Indeed, one business could not attend because it was taking difficult decisions in relation to the business that day. The Minister has outlined a number of things that are in the purview of the devolved Government, and I will be taking those up with the Scottish Government. As a Scottish MP and a Scot representing Scottish businesses, however, I am looking for things that the Government can do on a UK level. The Liberal Democrats have been proposing an emergency VAT cut for hospitality businesses for some time, so why will the Government not consider that?

[Dan Tomlinson]

Business rates are a devolved matter. The changes that we have announced and the support that we have put in will have consequentials for funding for the Scottish Government. VAT is a broad-based tax that raises a significant amount of revenue for the Treasury. That is important in ensuring that we can manage our public finances and bring in the revenue to be able to get borrowing down, which this Government are doing and previous Governments failed to do. When the Liberal Democrats last had the chance, their choice was to put up VAT rather than cut it.

Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 27th January 2026 Commons Chamber

[James Murray]

My hon. Friend is absolutely right. The hon. Member for Clacton (Nigel Farage) is warmly welcoming people who spent 14 years undermining public services, who wrecked the economy, who botched Brexit, and who were booted out by the British people in 2024—and Reform’s latest recruit was so bad that she managed to get sacked by Liz Truss.

[Wendy Chamberlain (North East Fife) (LD)]

T9. I heard the Minister’s words to the hon. Member for Shipley (Anna Dixon) about the energy company obligation 4 scheme, but the vague promise in the warm homes plan to put right poor-quality work under ECO4 seems like empty words to my constituents who are affected. Will the Treasury consider the only viable alternative to this disastrous scheme, which is redress?

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

That is an important question, because too many people have been let down by the scheme that was introduced by the Conservatives. I am sure that the hon. Lady noted the Energy Secretary’s announcement last week about the £15 billion warm homes plan, which will ensure that work to upgrade the quality of British homes continues in the years ahead for all households, but particularly for low-income households. She will also be aware that ongoing remediation work will take place as part of that scheme.

Agricultural Property Relief and Business Property Relief

Wendy Chamberlain Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

I thank my hon. Friend for his question, which has given me a chance to return to a question that the shadow Secretary of State, the hon. Member for Epping Forest (Dr Hudson), asked, but that I did not quite get to—he will have to forgive me. I will put on record for the House that the number of estates claiming only business property relief is set to fall from 325 to 220 a year as a result of our increasing the threshold from £1 million to £2.5 million.

I have met representatives of Family Business UK. I know that, as well as having private conversations about APR, Labour Members have been discussing the BPR proposals with the Government. The uplift in the threshold will mean that family businesses that people wish to pass on will now be subject to a lower tax rate, or will not have to pay the tax at all in many cases.

[Wendy Chamberlain (North East Fife) (LD)]

I find it interesting that the Minister says that this is the right policy. That is what the Government said on 23 December, but not what they said at oral questions on 18 December—the day before we rose for recess. I have spoken to farmers who will now not be affected by the tax, but who have spent cashflow and hard-earned savings on financial advice to ameliorate their position. Things are not getting easier for farmers; just this morning, one of my local farmers got in touch to say that he was informed on new year’s day that his milk supply faces a 3p per litre cut. What is the Government’s assessment, alongside what is in the Batters report, of the ongoing financial impact on farmers, be it of poor Government policy or of poor supply chain practices?

[Dan Tomlinson]

Earlier in the year, Members asked us about making these changes, and we have come forward with a revised proposal that includes a higher threshold. That is the right thing to do; it shows that we have listened to representations from the farming and business communities, as my hon. Friend the Member for Sheffield South East (Mr Betts) mentioned. The Batters report, which was published on 18 December, made a number of recommendations. We will take forward many of those proposals to ensure that we support increased profitability for farmers and continue to work on important sustainability initiatives.

Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 9th December 2025 Commons Chamber

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

Energy bills are too high. The Conservatives left Britain dependent on the rollercoaster of gas prices, and left families paying almost £2 billion on bills for their failed energy efficiency scheme, the energy company obligation. We are scrapping ECO and taking some of the expensive levies off bills. My hon. Friend makes an important point about standing charges. He will know that Ofgem continues to consider low standing charge tariffs for exactly the reason that he raises. More generally, reducing energy bills is so important precisely because they are typically a higher share of disposable income for low-income households.

[Wendy Chamberlain (North East Fife) (LD)]

T7. There is agreement across the House on the importance of access to cash, as well as on the importance of access to banking services, which are critical for high streets in areas such as Cupar and Letham in my constituency. When will the Government agree to have the Financial Conduct Authority review the criteria for access to banking services? There are to be 350 banking hubs, but that is a meaningless number if communities continue to lose face-to-face services.

[Lucy Rigby]

I am afraid that I must disagree with the hon. Lady when she says that 350 is a meaningless number, but of course we understand the importance of in-person banking for rural communities. The location of banking hubs is determined independently by Link, and the criteria are a matter for the FCA, but I regularly meet MPs to discuss the adequacy and the application of those rules. In fact, there will be a banking hub surgery for Members of Parliament tomorrow, and she is more than welcome to join it.

Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 9th September 2025 Commons Chamber

[Rachel Reeves]

The Government are currently consulting on a landfill tax. It is a consultation, and it is open for comments from right across industry, but this Government are investing in infrastructure. Compared with the plans that we inherited, which would have seen capital investment fall as a share of GDP, we are instead putting an additional £120 billion in, as well as £70 billion through the National Wealth Fund. Crucially, that is leveraging in private sector investment in transport infrastructure, including roads, railways and airports, and digital infrastructure. We are growing the economy—a far cry from what the Conservatives did in their 14 wasted years.

[Wendy Chamberlain (North East Fife) (LD)]

3. What assessment she has made of the potential impact of changes to employer national insurance contributions on economic growth.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

11. What assessment she has made of the potential impact of increases in employer national insurance contributions on businesses.

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[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

Thank you, Mr Speaker. The immediate task facing the Labour Government was to take action to stabilise the public finances and invest in our public services. On national insurance, we did that in a way that protects the smallest businesses by increasing the employment allowance from £5,000 to £10,500. That means that 865,000 employers will pay no national insurance contributions at all, and more than half will either gain or see no change.

[Wendy Chamberlain]

The national insurance increases in last year’s Budget not only increased national insurance, but impacted on part-time workers, many of whom the hospitality industry relies on. Hospitality companies in North East Fife have written to me directly, but they have also started to share with their customers the real impact of the cost increases they are seeing. Does the Minister agree that there has been an impact on hospitality, and will he commit to ensuring that the Chancellor delivers a hospitality-friendly Budget come the autumn?

[Dan Tomlinson]

I thank the hon. Member for being the first parliamentarian today who has not asked me, “Who will you be backing in the Labour deputy leadership contest?” I appreciate that very much.

When it comes to small businesses, in particular those in hospitality, overall employment has increased by 380,000 since the Government came to power. This week, I will be having discussions with members of UKHospitality to think about how we can support the sector more through the changes to business rates announced last year. We will come forward with more details on that in the Budget later this year.

Bank Closures and Banking Hubs

Wendy Chamberlain Excerpts

Thursday 5th June 2025 Commons Chamber

[Ian Lavery]

I thank the hon. Lady for her intervention; I will cover some of those points.

I mentioned Blyth, the biggest town in my constituency. The third largest town in Northumberland, Bedlington, saw its last branch close just last month. From August in my constituency, only Ashington, the county’s third largest town, will have a high street bank, but many will wonder how long that will last. Who is affected by these bank closures? Like any change of this nature, is it not the most vulnerable who find it the most difficult? The FCA’s research in 2019 set out how problematic the requirement to travel bigger distances for banking services was for older people, and provided evidence for the slow uptake of online banking services by older people.

Only last week, my office was contacted by an elderly gentleman from Guide Post. His local bank closed in 2000. He moved to the branch in Bedlington, a few miles away, where he stayed for nigh on 25 years before that closed. Then he moved to the one in Blyth, a few miles further away; that branch is now to be closed, as I mentioned earlier. He is unable to access internet banking, he does not have any family, and he is unable to travel any further distances, whether by using basic transport services or otherwise.

[Wendy Chamberlain (North East Fife) (LD)]

As others have said, the hon. Member has been very generous. His speech is making me think about vulnerable customers, and access to responsible credit for them. Just a couple of weeks ago, the all-party parliamentary group on fair banking had a roundtable. Actually, online banking services do not help those really vulnerable people, where there is a sense of shame in potentially needing small amounts of help and support. Does he agree that that is something else that we, and the Government, need to consider?

[Ian Lavery]

I fully agree with the hon. Lady’s intervention. It is up to us, in this place, to speak up for those vulnerable people.

We know that the banks profit and make savings from branch closures. In January 2020, a House of Commons Library briefing pointed to the major banks enjoying a 6% decrease in overhead costs through branch closures. In 2024, HSBC reported the highest net profit among the largest UK banks, reaching just under £20 billion; Barclays followed, with around £6.36 billion; and NatWest’s net profit was approximately £4.8 billion. The big four UK banks—Barclays, NatWest, Lloyds and HSBC—are estimated to have made a combined £44.7 billion in profit. They are not hard up, you know —they really are not hard up. That is why it is important that we, as elected representatives, press that point home to Government.

The FCA’s current powers around bank closures have been mentioned two or three times already, and they go to the heart of the issue. Unfortunately, the banks are a law unto themselves. The FCA has no statutory powers to prevent bank closures. It can only seek to influence such decisions through its guidance notes. On branch closures, the FCA guidance requires banks to assess how closures will affect customers, especially those with vulnerabilities, using data on usage trends; consider alternative solutions to customers’ needs, such as free ATMs, post offices and banking hubs; and ensure that customers are given clear information and that they are not misled. Although the FCA cannot stop closures, it can require pauses in branch closures if it is not satisfied that the important matters that I have just mentioned have been considered adequately. Given everything we are talking about, I think that approach fails. Legislative changes are needed to ensure there is much more flexibility in that guidance.

Link is a not-for-profit company that is charged with making access to cash available, largely through ATMs. It can charge for using its ATMs and is allowed to charge more in rural areas. Prior to the Financial Services and Markets Act 2023, the major banks ran a voluntary assessment scheme using Link to carry out research into the effects of planned branch closures. The Act made the Link assessments mandatory but did not significantly widen their scope. The Link assessments analyse the impact of branch closures in terms of access to cash, and outline existing and recommended new alternatives, such as banking hubs.

In Blyth, which is Northumberland’s largest town, the banks ran out of cash over a bank holiday weekend not many weeks ago. Blyth—it is a massive place—did not have any cash. Can you imagine that? It did not have any cash whatsoever simply because the cash machines ran out and the Morrisons supermarket cash machines were inside the closed store. An hon. Member raised the point about having different cash machines in different places, but if people rely on a supermarket for access to cash, perhaps as a last resort, and it closes at 7pm or 8pm, then they do not have any access to cash.

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[Wendy Chamberlain (North East Fife) (LD)]

It is clear that we all care about our constituencies. My constituency of North East Fife is well below the UK average in the statistics on access to cash. The new powers and obligations given to the FCA under the Financial Services and Markets Act 2023 have gone some way towards addressing these problems. It is important to remember that everything happening before was voluntary. We have twice gone through the review process with Link—successfully in Anstruther, but frustratingly not so in Cupar.

The Anstruther banking counter is to some extent a success story. The banks closed and the post office closed, but a review was carried out and recommendations were made for a counter providing cash deposits and withdrawals. However, there were some problems with the process that I hope can be ironed out. The review was requested by a local organisation that had hoped to provide space for the counter, if recommended, knowing that a lot of its customers use cash and there is no nearby ATM, but it was not automatically advised of the outcome of the assessment and found out only after the fact. That meant it did not get the chance to make an input to those making an assessment of possible locations. I myself was not aware of the opening of the hub until I heard incidentally from a local councillor who was involved in the running of the location where the hub opened. If elected representatives and the local media do not know about counters opening, I am very concerned that the public will not know either.

However, the main issue, which many have picked up, is that the cash counter is not a banking hub. Part of the picture, as I understand it, is that we could have more support in Anstruther if someone was willing to take on the post office, but no one wants to, and having met the National Federation of SubPostmasters earlier this year, I can understand why. This is a problem that the Government need to address and I hope the Minister can do so in her remarks. What are the Government doing to make taking on a post office more attractive? They are vital to the success of banking hubs, but also the health of communities more generally.

The other part of the picture, as others have touched on, is that the legislation only requires maintaining access to cash, not banking services. That is a real oversight. I mentioned, in my intervention on the hon. Member for Blyth and Ashington (Ian Lavery)—I congratulate him on securing the debate—that the all-party parliamentary group on fair banking gave us some quite worrying stats on the financial health of household incomes. It is incumbent on banks to help people better manage their finances so that we do not end up with situations where people are in debt. I asked the Minister whether the financial inclusion committee, which she chairs, would look at access to banking services. I hope she will be able to update us on that today.

The last point I want to make, which others have mentioned, is about the challenge around ATMs. We have had a big problem in Leven where, in just the last few weeks, the final bank has closed. We have a Nationwide, but it consistently runs out of money and customers are really showing their frustration. Whether it is more cashpoints or more replenishing of what is already there, something has to be done. The assessments need to take better consideration of what cash usage actually looks like in an area.

Oral Answers to Questions

Wendy Chamberlain Excerpts

Tuesday 20th May 2025 Commons Chamber

[Emma Reynolds]

I would be happy to meet my hon. Friend to discuss that issue.

[Wendy Chamberlain (North East Fife) (LD)]

Access to banking services is a particular issue in North East Fife, where the limitations of the access to cash legislation are becoming clear. Will the financial inclusion committee agree to look at the Financial Services and Markets Act 2023 to ensure that we get the access to banking services that local communities need?

[Emma Reynolds]

Our Government secured the commitment of the banking industry to roll out 350 banking hubs across the country; 200 have already been agreed and over 150 are open. The financial inclusion committee, which I chair, is looking at financial inclusion, including digital banking and ensuring that people have the bank accounts they need.