Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 February 2025 to Question 29957 on Bank Services and Banking Hubs, if her Department will direct the Financial Conduct Authority to require the creation of banking hubs in new towns without banking services.

Banking has changed significantly in recent years with many customers benefiting from the ease and convenience of remote banking. However, the Government understands the importance of face-to-face banking to communities and high streets in new towns and across the UK and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 135 are already open.

The Financial Services and Markets Act 2023 granted the Financial Conduct Authority (FCA) the responsibility and powers to seek to ensure the reasonable provision of cash withdrawal and deposit facilities. Under the FCA’s regime, LINK, the operator of the UK’s largest ATM network, is responsible for undertaking access to cash assessments. When a cash access facility such as a bank branch closes, or if LINK receives a request directly from a community, including in new towns, LINK independently assesses a community’s access to cash needs and can recommend a new service, such as a banking hub.

A community request can be submitted to LINK via its website.

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.