Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure adequate (a) financial and (b) other support for communities with a building society but not a banking hub.

The Government recognises the value that building societies bring to their members in local communities across the country, and the value of their 30% share of the UK’s branch network. However, I recognise that most building societies do not provide current accounts or serve businesses.

The Government understands the importance of face-to-face banking to communities and high streets and is committed to championing sufficient access to all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs, which allow businesses and individuals to deposit and take out cash, across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 200 hubs have been announced so far, and over 100 are already open.

Further, the Financial Conduct Authority has introduced rules which seek to ensure individuals and business have reasonable access to cash withdrawal and deposit facilities. Under these rules, LINK will assess the impact of a closure or material change of a cash service on the local community and recommend new services if necessary. Assessments can also be requested by the local community. As part of its process, LINK considers what services are already available in the area, including any existing branches, and whether they meet the needs of the local community.

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. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.