Bank Closures: Rural Areas
Debate between Wendy Chamberlain and Simon Hoare(1 day, 16 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Simon Hoare
I agree. I will certainly come on to what I am asking the Government to consider, but the hon. Gentleman is right to talk about social isolation. We have lost 14 banks in my constituency since 2015. In 440 square miles, we have five banks remaining. We have had a fall of 74%. Across the county of Dorset, which includes the major conurbations of Bournemouth, Christchurch and Poole, we have had a decrease of 68% overall, with 101 branches closed and only 48 remaining in the whole of the county. Eight parliamentary constituencies are served by just 48 banks.
My constituent Deborah Jones made a good point in response to a recent announcement by Lloyds that it is closing its branch in Blandford Forum, a market town in my constituency with a large village hinterland. With the exception of Nationwide, it now has no proper, traditional high street branch.
Wendy Chamberlain (North East Fife) (LD)
The hon. Member mentioned Nationwide. My understanding is that 142 towns in the UK do not have a bank, and many are left only with a building society. It seems that the banks have exited while the building societies have stayed behind. I would appreciate his thoughts on what that says about the lack of community cohesion as a result of losing those banks. Often we are losing post offices at the same time.
Simon Hoare
The hon. Lady is right. She allows me to pause to pay tribute to the Post Office and to members of the Association of Convenience Stores, which have stepped in to provide some level of service in those areas where the banks have gone. That brings me to one of my key asks of the banks, and the Minister as well. Yet again, a rubric seems to be used to argue in favour of closures that is blind to whether it is an urban or a rural setting. That differential needs to be taken into account.
Simon Hoare
The hon. Gentleman is absolutely right. In many respects—[Interruption.] I am beginning to get paranoid; I hear voices. He is absolutely right to make the point that he does. I pay tribute to how the Post Office has stepped up. Very often, in providing that sort of transactional bank service, it has supported the continuance of rural post offices, which can often be marginal and fragile businesses themselves. Again, I think it an easy crutch to lean on to say, “Well, of course, the post office does this.” We can all applaud what post offices do, but customers cannot use them to talk to someone from their bank to discuss their overdraft, loan, mortgage, business credit card maximum or whatever it may happen to be.
I say to the Minister that we want our local businesses and small and medium enterprises to flourish—small, micro and family-owned businesses are very much the hallmark of a rural economy—and they have the greatest need, on a more regular basis, for that relationship with their banks. Then, the banks know the nature of the business and its long-term viability, and they can build that relationship.
Wendy Chamberlain
I am grateful to him for giving way a second time. He is making an important point. One of the things that I have always found interesting is that when a bank has closed in North East Fife, it offers to deliver not an access-to-cash service but some kind of pop-up banking advice service in the constituency. That suggests to me that banks know very well that giving banking service advice is important. Instead of doing it as a sop for a number of months before giving up, they need to do it on a more regular and permanent basis.
Simon Hoare
The hon. Lady is again absolutely right. Surely it makes good commercial sense for high street banks, as we used to call them—increasingly, they are not particularly high street banks—to be able to tout their wares to existing or potential customers. That is how to generate business: by having a presence. A hub makes a very good presence for them all, but they seem to move at the speed of the slowest, and if one is not particularly convinced, the whole thing sort of seems to fall down. I know that the Government are trying to do more on that, but I think they could do even more to turbocharge it.