Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of bank branch closures on small businesses.

The Government understands the importance of face-to-face banking to communities and businesses, and is committed to championing sufficient access for all as a priority.

That 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 150 are already open.

Cash Access UK, who oversee the rollout of banking hubs, reported from their research in Brixham (Devon) and Rochford (Essex), in October 2024 that spend on the high street is 71% higher amongst those who have visited the banking hub. Almost half (47%) of businesses surveyed said they have experienced an increase in footfall thanks to the banking hub.

In addition, Financial Conduct Authority (FCA) 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 alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers, including business customers, fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.