Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions the Government has had with Lloyds Bank on (a) the closure of branches in (i) Haslemere, (ii) Petersfield, and (iii) Godalming and (b) the effect of those closures on local communities.

The Government understands the importance of face-to-face banking to communities, high streets and rural areas and is committed to championing sufficient access, including for older and digitally excluded customers. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and over 180 are already open.

While branch closures are commercial decisions for banks, Financial Conduct Authority guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place reasonable alternatives. This seeks to ensure that branch closures are implemented in a way that treats customers fairly. Firms are not able to close cash facilities, including bank branches, until any additional cash services identified as needed in the relevant assessment are available.

Customers can access everyday banking services in a range of ways that suit their needs. This includes telephone banking, digital channels such as mobile or online banking and in person via bank branches and banking hubs. This mix of options helps ensure that people, particularly those who are less digitally engaged, can continue to manage their money confidently and securely.

The Post Office plays a key role in supporting access to banking services. Under the Banking Framework, a commercial agreement between the Post Office and 30 banking firms, personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK. Decisions about what services are available at the Post Office, such as cheque deposits, are made by the banks as part of their commercial arrangements.

While there has been a decline in overall cheque volumes, they continue to be used by many individuals, charities and businesses. In addition to traditional deposit methods, cheques can also be deposited digitally via mobile apps using cheque imaging technology.

Beyond banking hubs and Post Office services, some banks provide further points of access through initiatives like pop-up services in libraries and community centres, or mobile banking vans serving remote areas. The Government supports these initiatives.