Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to (a) help increase the number of banking hubs and (b) protect access to free-to-use cash machines in high-deprivation areas in Glasgow.

The way people across the UK use retail banking services has changed significantly, with many customers now choosing to bank online. In response, banks and building societies have reshaped their branch networks, reflecting changing customer preferences.

However, the Government understands the importance of banking services to communities and high streets and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Banking hubs are a voluntary service which were developed by the financial services sector in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023.

Over 275 hubs have been announced so far, and more than 235 are already open. The Government continues to engage with industry on ways to improve the consistency and level of services provided through banking hubs.

On 14 May the Government commissioned an independent Review into Access to Banking Services to assess whether changes in access to in-person banking services are causing consumer detriment, the scale of any detriment, and who it affects.

The evidence collected by the Review will inform future decisions on whether further action is needed. Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.

The Government also recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.

Under the Financial Services and Markets Act 2023, the Financial Conduct Authority (FCA) has responsibility and powers to protect access to cash, including free facilities for personal current account holders. The FCA’s most recent data shows that 99.2% of the urban population live within 1 mile of a free to use cash access point offering withdrawals. In rural areas, 98.5% of people live within 3 miles of a free to use cash access point offering withdrawals.

HMT launched the Access to Banking Services Review Call for Evidence on 8 June and will run for 6 weeks, closing on 20 July, inviting input from consumers, businesses, charities, community groups, local authorities and industry across the UK. The evidence will inform recommendations, with findings due in October. Responses can be submitted here: https://www.gov.uk/government/consultations/access-to-banking-services-review-call-for-evidence.