Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help prevent the closure of banks in East Devon constituency.

The Government believes that all customers, wherever they live, should have appropriate access to banking and cash services, and I would like to assure you that I am monitoring the issue of branch closures closely. Whilst decisions to open or close a branch are commercial decisions for banks, it is imperative that banks and building societies recognise the needs of all their customers, including those who still need to use in-person services.

The Financial Conduct Authority (FCA)’s guidance is clear that firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs, and put in place alternatives, where this is reasonable. This seeks to ensure the implementation of closure decisions is done in a way that treats customers fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.

Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office or Banking Hubs. The Post Office allows personal and business customers to carry out everyday banking services at 11,500 Post Office branches across the UK.

Banking Hubs are a voluntary industry initiative, which enable customers of participating banks to access cash and banking services in shared facilities. As such, decisions regarding their operation, including opening hours, are taken by participating banks. Over 100 Banking Hubs have been announced so far, including in Sidmouth. 33 Banking Hubs are already open across the UK, and the Government hopes to see the others open as soon as possible.