Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to ensure that the banking sector does not cease to offer business bank accounts to support people who have lost their jobs being able to set up in business or as self-employed.
Decisions about what products are offered to individual businesses remain commercial decisions for banks and building societies. It would be inappropriate for the Government to intervene in these decisions. But the Government has always been clear that lenders should open to new customers where it is operationally possible for them to do so.
Throughout the COVID-19 pandemic, there has been unprecedented demand for banking services, this accompanied with working restrictions due to social distancing has meant banks have faced significant capacity pressures which has limited their ability to meet demand. Banks are doing all they can to meet this demand in these difficult circumstances.
A number of banks remain open to new business customers, and I would encourage businesses struggling to access banking services to explore the full range of alternative finance providers.