Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential implications for her policies on small businesses of trends in the number of bank closures in the last two years.

Decisions to open or close a branch or mobile banking service are commercial decisions for firms and the Government does not intervene. However, it is imperative that banks and building societies recognise the needs of all their customers, including those who need to use in-person services. Banks and building societies occupy a privileged position in society and are essential to enabling businesses to manage their money on a day-to-day basis.

Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches. Firms are expected to carefully consider the impact of planned closures on their customers’ everyday banking and cash access needs, and put in place alternatives, where this is reasonable.

Alternative options to access everyday banking services for small businesses can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office or Banking Hubs.