Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to help prevent the closure of high street banks in rural areas.

Decisions on opening and closing branches are taken by the management team of each bank on a commercial basis, with which the Government does not interfere.

Nonetheless, the Government believes that the impact of branch closures should be mitigated where possible so that all customers, wherever they live, continue to have access to appropriate banking services.

The Government supports industry working together to provide alternative banking and cash services, such as Banking Hubs. To date, industry has committed to delivering new shared Banking Hubs in over 100 communities. Further 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 also allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at more than 11,500 Post Office branches across the UK.

Guidance from the Financial Conduct Authority sets out its expectation of firms when they are deciding to close their branches. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements. This seeks to ensure the implementation of closure decisions is done in a way that treats customers fairly. The Consumer Duty also requires that firms deliver “good outcomes” for customers.