MPs from across the House of Commons have called for action to protect face-to-face banking services in rural areas. In a Westminster Hall debate yesterday (1 September), parliamentarians expressed widespread concern that current arrangements focus too heavily on access to cash and fail to recognise the wider banking needs of rural communities.

The debate, secured by Caroline Voaden MP (South Devon, LD) and informed by briefing from the Countryside Alliance, echoed our warnings that bank branch closures disproportionately affect rural residents and businesses who face long journeys, poor public transport and unreliable digital connectivity when local services disappear.

Ms Voaden highlighted the scale of the problem in her own constituency, where the closure of the last bank in Totnes has left the town without adequate face-to-face banking provision. She called for the criteria for banking hubs to be widened to reflect the full range of banking services communities need, rather than focusing solely on cash access.

The need for banking hubs to provide advanced services was echoed by MPs from across the House. Amanda Hack MP (North West Leicestershire, Lab) stressed the importance of business banking and support for local businesses, while Joe Morris MP (Hexham, Lab) warned of banking hubs opened after branches have closed providing only some of the lost services.

Numerous MPs highlighted difficulties faced by vulnerable customers. Dr Peter Prinsley MP (Bury St Edmunds and Stowmarket, Lab) described how an elderly constituent concerned about a potential scam might need to travel considerable distances to speak to someone face-to-face, while Lizzi Collinge MP (Morecambe and Lunesdale, Lab) stressed the importance of in-person support with issues such as bereavement and powers of attorney.

The impact on rural businesses was another recurring theme. Charlotte Cane MP (Ely and East Cambridgeshire, LD) highlighted the banking needs of farmers, while Sarah Dyke MP (Glastonbury and Somerton, LD) warned that forcing rural businesses to travel further to deposit takings increases costs and can increase their vulnerability to rural crime.

The government is currently conducting an independent Access to Banking Services Review, chaired by Richard Lloyd. The Opposition welcomed this initiative but pressed for faster action. Conservative MPs, including Mark Garnier (Wyre Forest) and Graham Stuart (Beverley and Holderness), recognised that banking habits are changing and that commercially unviable branches cannot necessarily be maintained indefinitely, but argued that alternative provision must ensure vulnerable customers and rural economies are not left behind.

Responding for the government the Economic Secretary to the Treasury, Lucy Rigby MP, acknowledged that many people still need face-to-face banking, including older and vulnerable customers, small businesses and those affected by poor connectivity. She confirmed that the Access to Banking Services Review will report next month.

The Minister also pointed to the government’s commitment to deliver 350 banking hubs by the end of the Parliament, with more than 280 now announced and 240 open. She said that hubs are increasingly providing services including account opening, powers of attorney, bereavement support and help with fraud and scams.

Ms Rigby acknowledged MPs’ concern that current arrangements for deciding where banking hubs are located focus on access to cash. She conceded that there was “a real strength of feeling across the House” in favour of wider consideration of access to face-to-face banking services.

The debate demonstrated the strength of cross-party support for ensuring rural communities have meaningful access to banking. The Countryside Alliance will continue to press the government to ensure that the findings of its review lead to a banking system that reflects the needs of rural residents and businesses.