It is pleasing to see a significant number of Members in the Chamber to be part of this Adjournment debate, by hearing it and perhaps by participating. I am aware of about 15 hon. Members who have asked to intervene on me, which is a high number for an Adjournment debate. There may be more whom I am unaware of. The Minister has kindly indicated that she is also happy to take interventions, so if hon. Members feel like spreading the love when they think I have had enough, that would be much appreciated.

On that point—[Laughter.] First, may I commend the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for bringing this matter forward? I spoke to him beforehand, and I thought it was important to put this point on the record. I have had 11 banks close in my constituency, and seeing the decline of banks in rural areas has been excessively worrying and frustrating. Although every bank that has pulled out of the peninsula in Ards has promised working hubs, the reality is that a member of staff in a room without even the facility to print off a bank statement for a client is not acceptable. Does the hon. Member not agree that a hub must have banking facilities, as well as a post office, and that we must make sure that there is not just a member of staff for two hours a day or a week?

I absolutely agree with that. It is important that, where there are hubs, they are open for a reasonable period of time and are accessible at different points of the day to different people with different needs.

The important subject of banking hub criteria has been raised many times in this place and in Westminster Hall, and it is an issue I have campaigned on since I was elected and during my time as a councillor and a council leader. In 2015, Moray West, Nairn and Strathspey had 22 bank branches. Just 11 years later, the number has dropped to just six in the latest data from January this year; that is a 77% reduction. That is six banks for almost 100,000 people living in the fifth largest constituency by geographical area in the UK—a constituency that it takes about two and half hours to drive from end to end.

The following bank branches alone have closed since 2020: in Forres, the Bank of Scotland and TSB closed their branches in 2022; in Badenoch and Strathspey, the Bank of Scotland closed its branch in Aviemore in 2024; and in Grantown-on-Spey, the Bank of Scotland and the TSB closed their branches in 2020 and 2021; while in Nairn, the TSB closed its branch in 2021, and most recently, the town lost its last bank. Link, the organisation that monitors bank closures and which is tasked with determining where new shared services should be, reports the total number of bank closures across the UK as 2,237 since 2022. For the same period, 276 banking hubs have been recommended by Link.

In this modern age, when there is digital banking on websites and through apps and when, frankly, fewer and fewer people are using physical bank branches, it is not a surprise to see those closures. However, it is how we respond that is important. There remain many vulnerable people and, indeed, certain types of businesses that rely heavily on cash banking and we cannot allow the rug to be pulled out from under them.

I am grateful to the hon. Member for giving way and for securing this debate and choosing this topic. He is so right that there are older and vulnerable people who are not able to access banking services or to access cash because of high street bank closures. Does he share my view that the Government’s introduction of the Financial Services and Markets Bill today in the other place presents a great opportunity for them to consider how banking services and access to cash can be provided in rural areas?

I absolutely agree. I am pleased to see the Bill coming forward, as it will provide opportunities to make progress on this important issue.

There is also the vital question of community sustainability. The loss of banking services in rural communities makes it harder to attract people to live and work there. It also means the loss of local banking jobs that have long provided access to respected professional jobs and the potential of a career in financial services.

The hon. Member rightly talks about the lack of banking access in his constituency and in rural areas. I have noticed that there is now a lack of banking access even in my urban constituency in Glasgow, particularly in areas such as Castlemilk and Carnwadric. That is particularly bad because some of the people there do not have access to a car. Does the hon. Member agree that banking hubs are also important in urban areas where those services are not provided?

Certainly; there are some areas, particularly large estates in urban areas, where we can see services disappearing simply because of how people live their lives. It is important that the state takes action to protect those critical services that people access. I was a student in Glasgow, and I see lots of places where there were banks that I used when I was a student which simply do not exist any more.

I know that this is an issue that the hon. Member cares about passionately. I am sure that like me, he has had issues with people, particularly elderly people, who fear that they have been scammed. It is all very well saying, “Get online and we’ll see if we can sort this out,” but there is nothing like a face-to-face meeting and somebody from the Bank of Scotland, the Clydesdale or the Royal Bank of Scotland saying, “No, you’re okay,” or, “This is what we’ll do.” With all due respect, that reassurance is not there online. That is why I believe that face-to-face advice is hugely important.

I absolutely agree about face to face, particularly for vulnerable people, but also for businesses or maybe somebody who might be thinking about starting up in business. Being able to talk to a community banker who can give them a little bit of early advice about access to basic business services is really helpful.

The hon. Gentleman has been very generous with his time in allowing all these interventions. Does he agree that part of this is about fairness? Without the access to the professional advice that they would get from face-to-face banking, some businesses might not succeed as much as they should have done. In my own constituency, we have seen high streets being closed, but we have not yet been successful in getting a bank hub in Abbots Langley, despite there being a community demand and, I would argue, a need for it.

The hon. Gentleman makes a fantastic point and I will come on to that later in my remarks.

I thank the hon. Gentleman for giving way. We will leave him in peace for a while after this. For nine months I have been trying to get a banking hub in Ammanford, which is a post-industrial town, but Link has turned us down. We went to appeal and it turned us down again. Does the hon. Gentleman agree that we need consistency in applying Financial Conduct Authority guidance? All the elements seem to qualify that town for a banking hub, but yet again, Link has turned us down. There seems to be a lack of consistency in applying the rules.

Absolutely. That consistency is vital, but flexibility within the criteria is also vital. I will come on to that as well.

It is frankly hard to stomach that the big high street banks use the argument of increased digital banking to justify local bank closures while building large, centralised banking centres in our cities. Surely the same argument can be applied to push workforce and management out to existing bank branches in local communities and enable that local workforce to carry out tasks on national functions such as mortgage services and business banking using the very same digital technology.

On the point about the assessment made by Link under statute, does the hon. Gentleman agree that the three-mile radius that is being used by Link is totally inadequate when looking at rural areas such as mine in Pembrokeshire?

Yes, and I thank the hon. Member for that intervention. We are down to six bank branches in an area that takes two and a half hours to drive around. It is simply impossible for many people in those areas to access those services.

It is really interesting hearing about these rural-urban splits. My constituency is very much on the urban fringe, yet we are really struggling. We have been trying to get branches in Chertsey and Addlestone, and we had one in Cobham that recently closed down. This sounds like an issue that affects people everywhere, irrespective of rurality, and I thank the hon. Gentleman for taking forward this debate.

I thank the hon. Gentleman for that.

After the election, the Government said they were working closely with industry to roll out 350 banking hubs across the UK, which is very welcome, and that the banking sector was committed to deliver those hubs by the end of this Parliament. But that is not far off just one for every two constituencies, and we need more and much better targets than that.

The banking and cash hubs in Hornsea, Withernsea and now Hedon in my constituency are fantastic and really work well, but is the hon. Gentleman aware that Lloyds is the only major bank that does not allow the deposit of cheques at post offices and cash and banking hubs, and that that is damaging to the most vulnerable in our society and to the bank’s customers. Will he join me in calling on Lloyds to look at that again, to ensure that people can deposit those cheques? Apps and other approaches do not always meet people’s needs, particularly those of elderly people.

Absolutely. I would consider those to be basic services that people should be able to access as close to their own community as they possibly can.

I was perplexed to read, in response to a written question from November last year, that the Government do not hold any bank closure data at all, despite the figures that I have quoted from Link. That is concerning when it is considered alongside the policy of 350 banking hubs, as neither the Government nor we who provide scrutiny can determine definitively how many closures have occurred and, by extension, how much damage requires to be mitigated.

We successfully managed to apply for an interim banking hub in Kilsyth, which opened only four weeks ago. One of the grounds for having that hub was the closure of the Santander branch in Cumbernauld. There was a push then saying that the nearest alternative was the Santander branch in Kirkintilloch. Six months after the branch in Cumbernauld closed, notification was given that the Kirkintilloch branch would also close, with the nearest facility being in Glasgow, 25 miles away.

That gets to the heart of the matter. There is not an understanding by either the regulators or the banks themselves of the impacts that those closures have on communities that view themselves as being neighbours and part of a wider community, and the cumulative impact of that is significant.

We are talking about the rules. We know that the banks have withdrawn from our communities. My market towns of Fakenham and Aylsham have had all the banks go apart from one Nationwide. They say their answer to that is Link, and yet the rules seem to say that market towns, with that huge hinterland they also serve, are not sufficient to allow for banking services to be provided via hubs. Does the hon. Member agree that if those are the rules, those rules need to change?

Absolutely.

I turn to the inadequacies in the current framework, and I will try to make some progress. Current criteria include the number of remaining branches, the population size and the retail centre size, which is frankly ridiculous when some communities can be compact while others can have a narrow spread over a greater distance, often constrained by physical landscape and infrastructure features, such as rivers, railway lines, roads and, in some cases such as in my constituency, the foot of a mountain range. Transport distance, public transport links, population vulnerability and existing cash services are also all considered by Link. It is, however, the flexibility of those criteria that is the problem and the lack of cognisance of the wider geographic and population context, especially in areas such as the north of Scotland.

Friends in Kinross in Perthshire, while not in my constituency, noted that one criterion their community failed to meet was the retail centre requirements. They are sandwiched between a loch and a motorway, so the town can only realistically expand in two directions, resulting in smaller retail hubs rather than a bigger central area. Surely the answer is not reclaiming the loch or moving the motorway to get support for banking facilities.

Equally, the lack of progress on potential banking hubs in Grantown, Lossiemouth, Nairn and Aviemore in my constituency tells me that the current criteria are simply not good enough. Current population criteria ignore the needs of smaller hub towns in rural areas. Bus and train services to even relatively close alternatives still require significant journey planning and, indeed, cost for people who had previously been able to access facilities for free within walking distance. What may seem a relatively short distance can see a bus going off the most direct route into other communities, en route to the destination, and the return journey is not always available immediately on concluding banking transactions. In inclement weather, this process is even less appealing, and in mid-winter it is deeply concerning that elderly people may be waiting for buses in temperatures well below zero. That is very common through the winter months in the Cairngorms area where several of these communities are located.

The lack of banking facilities in Lossiemouth, for example, means that many businesses have to rely on services in Elgin, which is five to six miles away. Although that may not sound like a significant distance, travel times, paid parking and the impact of these repeat journeys to Elgin on smaller businesses’ workforces pose severe problems for Lossiemouth-based customers.

For the towns of Newtonmore, Kingussie and Aviemore, their last banks have all closed. The closest bank is in Inverness, which is up to an hour’s drive away across a distance of 30 to 45 miles. That is especially concerning as Aviemore is the UK’s principal ski resort, but locals and visitors alike do not have a bank to use. A banking hub would be a great way to boost the local economy, which is reliant on tourism and hospitality—traditionally a more cash reliant part of the economy.

For Grantown, a market town, its nearest non-Post Office banking service is now a 30-minute drive away in Forres, on a road with snow gates and snow poles that I can assure Members are necessary on numerous occasions over the winter. A banking hub would reduce journey times, costs and banking uncertainty for residents.

In Nairn, another busy town with significant tourism and a population of approaching 10,000 people, which is much higher in the summer with the tourist population added, there are no more banks in town. Alternatives are in Forres and in Inverness, but people cannot reasonably travel to and from those towns on public transport in under two hours, in addition to the time taken to transact their banking business.

Finally, I would like to point to an area not related to access to cash but to the other critical services offered by banks through banking hubs.

The hon. Gentleman is being incredibly generous with his time. I share his frustration that from the northern parts of Scotland to Southampton, on the south coast, the criteria is completely inadequate. In fact, in its assessment for the Bitterne application, Link included bus times that simply did not exist on any timetable anywhere. Does he agree with me that when banks have been removed, an assessment of access to cash is entirely the wrong answer to the question? Does he welcome, as I do, the Government’s review, and does he share my hope that what we will actually get to is an adequate, effective tool to assess the lack of banking services?

Absolutely. I am about to talk about the critical services offered by banks through banking hubs, which addresses the hon. Gentleman’s point.

Community bankers located within banking hubs can offer much needed savings, loan and mortgage advice. Recently, a local community leader in Grantown made the strong point that basic business support, such as collecting change, depositing and withdrawing cash, transferring money between business accounts, making payments, managing cards, fraud support and money advice and even offering simple advice on how to open a business bank account, can be the difference between a business thriving and a business failing in a rural community.

Paying utility bills, depositing cheques and, for local charitable groups, even depositing the proceeds from a coffee morning or a raffle stall at a Highland Games, can make the difference between succeeding or struggling. The golden thread in all of this is that without banking hubs in the areas that need them, current policy is making it harder for people to buy their own homes, to run their own businesses and even to simply access cash in these areas.

I am pleased to acknowledge the Government’s announcement last week of an independent access to cash review, which will report in October 2026. I would have liked that work to have been done and concluded by now, but now it is in place I do not want to be churlish or grumpy about it. I know that those engaged in that review will be paying close attention to debates like this. I am sure that they will have noted the number of hon. Members from all political parties who are contributing to this debate and making their views and those of their communities known on this important issue. It is important that the regulators and the independent reviewer hear that breadth of opinion, because that will inform the response to the review.

I thank the hon. Gentleman for giving way and allowing me to give one further example that I hope the reviewers will consider. Lloyds will this month close the last existing bank in Kingswinford and South Staffordshire, leaving all of my constituents, whether urban or rural, without a proper bank. However, none of the villages are eligible for banking hubs because of the presence of building societies—sometimes part-time building societies —within the villages. Does he agree that while our building societies provide a fantastic service, they do not provide the range of services that my constituents, particularly those with small businesses, need that could be offered through a banking hub?

Absolutely. Again, that goes back to the point I made about people needing a business service and basic business advice without having to travel dozens of miles to access that. Setting up a business is hard at the best of times, and having simple access to somewhere that will answer simple questions is really important.

To conclude my 12-minute speech that has now lasted for 20 minutes, banking hubs would make a massive difference to communities like Lossiemouth, Grantown, Aviemore and Nairn, and to the many other communities that Members from across the House have mentioned in the debate. I trust that the Minister will recognise the firm but constructive approach that I and other Members have taken on this important issue.

I am grateful to the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for securing this debate and for setting out the concerns of not only of his constituents but, as he made clear, those of the many Members who are in the Chamber this evening who want to talk about this topic. I congratulate him on gathering people from across the country and from across different political persuasions to talk about access to banking services—I know how important it is to people.

Let me start by acknowledging the important work done on this issue by my predecessor, my hon. and learned Friend the Member for Northampton North (Lucy Rigby), particularly in relation to the announcement of the independent review on access to banking services and the Financial Services and Markets Bill, which was introduced yesterday. I will return to that later in my speech—in fact, I will probably be referring most hon. Members’ interventions to the access to banking services review.

The Minister mentioned interventions, so I congratulate her and welcome her to her place.

I welcome this Government’s commitment to ensuring that people up and down the country have access to banking services. In my constituency, Mr Jignesh Patel has made an excellent application to open a banking hub in his post office in Anerley, with the support of local Labour councillors for Crystal Palace and Anerley as well as residents. With an experienced team already handling sensitive financial transactions daily and existing infrastructure already in place, his post office is fully equipped to deliver a banking hub with minimal disruption. Does the Minister agree that the application process must ensure that the merits of excellent applications such as that of Mr Jignesh Patel are fully considered, giving him and others the best chance of success?

I thank my hon. Friend for his thoughtful intervention, and I wish local businesses in his constituency all the best. These decisions are made by Link, but the Government keep a very close eye on the assessment criteria.

I want to bring a bit of good news to the House. Last month, I had the honour of cutting the ribbon on a new banking hub on Oxford Street in Ripley. It is an important facility for my constituents, but it is actually the first of its kind. It did not go through the Link procedure; it was identified as a site by Cash Access UK. It is run by and staffed entirely by Cash Access UK, so a continuing team is involved there. Will the Minister recognise the great achievement of Cash Access UK in my town and the importance of similar banking hubs across the country?

I absolutely recognise the importance of banking hubs, as my hon. Friend has described. I am very grateful to her for highlighting the different models available, and I very much hope that she will submit some of that evidence and the case study to the access to banking services review.

I am particularly struck by the reflections of hon. Members on the importance of banking services for those who are vulnerable, and the importance of banking services in urban and rural communities and how they have been lost.

I welcome the Minister to her new role.

On the criteria, I have pushed for a banking hub in Budleigh Salterton for a great deal of time, but it was pushed back because there is a post office in the town. The post office was closed for 10 weeks last year, and the surrounding rural villages—places such as East Budleigh, Otterton and Colaton Raleigh—were starved of cash. Will the Minister meet with me to look at the criteria that Link has put in place around the post office’s suitability to see if we can get that overturned?

I would absolutely be happy to meet with the hon. Member to talk about that issue. I hope to meet with Members from across the House about the access to banking services review.

I welcome the Minister to her place.

My constituency was one of the lucky ones that was awarded a banking hub two years ago, and I worked with Cash Access UK to secure a temporary place in the council library. Two years on, it has failed to secure an accessible permanent site and is refusing to engage with me. Will the review also look into the delivery of commitments by Cash Access UK?

I thank my hon. Friend for her contribution, and I hope that we can discuss it during the review.

I have had the pleasure of opening two banking hubs, in Rossington and in Thorne, and have seen the success that they have brought to the area. However, I also have the Isle of Axholme—a rural area—in my constituency, and access to cash is really important for financial inclusion, local businesses, and the resilience of our rural communities. Will the review take that into account?

My hon. Friend makes important points about access to banking services across a number of different areas. I am grateful to him, and I hope we can continue to discuss this issue.

We now have very little time left—

On that point, will the Minister give way? [Laughter.]

I will.

I am grateful to the Minister for giving way. Could she give my constituents some comfort that after the review—I am certain it will find that the current criteria set out for Link by the FCA are deeply flawed and exist in a random, abstract form that bears no resemblance to local people’s circumstances—places such as Pitlochry will be able to revisit Link and the FCA’s flawed decisions?

I disagree—I think that the hon. Gentleman goes too far in his criticism of the criteria. It is important that the Government continue to monitor how these banking hubs are assessed and the need for them.

I will close by talking about—

Will the Minister give way?

I am going to make a little bit of progress now, because we do not have much time. Despite the important progress that we have heard this evening about the number of banking hubs that have been set up—a commitment to 275 with 235 already delivered—it would be premature to conclude that all people and communities are receiving support with their banking needs. Decisions to close bank branches are ultimately commercial decisions taken by banks and building societies, and reflect some of the changes in the way people choose to bank.

Will the Minister give way?

I have to finish now. I welcome the commitments that firms have made to maintain or improve their existing branches, recognising just how important they are to their customers. There are already some rules and obligations for firms that are changing their branch networks, which they must take very seriously. All Members should know that those decisions must be taken with regard to the impact on customers and communities. I underline that banks and building societies are expected to put appropriate alternatives in place ahead of closure, and where they fall short of those expectations, the FCA can and will ask for closures to be paused.

Will the Minister give way?

I am not going to give way. I fully support those powers, and expect the FCA to use them where necessary. However, the Government are concerned that although firms have been reshaping their branch networks in response to customer demand, this may be creating particular challenges, which is why we have brought forward the review.

The Government recognise how important it is that communities such as those represented by the hon. Member for Moray West, Nairn and Strathspey and many other Members from all parts of the country have sufficient access to cash and banking services. Banks and building societies are a core part of the everyday economy. It is critical that communities have sufficient access to those important services. I am sure that many Members from across the House agree with that, and I look forward to working with them on the access to banking services review.

Question put and agreed to.