Labour pledge law to clamp down on bank closures in North Wales
A Labour government will legislate to prevent banks closing branches and undermining the viability of local high streets, shadow chancellor John McDonnell has said.
North Wales has been particularly hard hit. Just this year, HSBC has announced the planned closure of branches in Holyhead, Llanrwst and Holywell, while NatWest has announced nine branches are to close in North Wales in 2017.
Last month, Santander said it was shutting its branch in Prestatyn.
Under Labour’s plans, banks will be required by law to consult with customers and the local council, and to obtain the approval of the Financial Conduct Authority before shutting down a branch.
Mr McDonnell said the measure was needed to prevent an “epidemic” of closures damaging communities and small businesses which relied on their services.
With the Consumer Association calculating 1,046 branches were closed in the UK between December 2015 and January 2017, with another 486 facing the axe, Labour said it was clear a voluntary “access to banking” protocol agreed with the Government had failed.
Only legislation, the party said, could compel the banks to put their obligations to provide a service to the public ahead of their desire to cut costs.
Labour pointed to research by the Move Your Money campaign for sustainable banking, suggesting the growth in lending to small businesses fell by 63% in areas where the local branch was shut down.
Deprived communities were hit particularly hard, it said, diminishing their access to even basic financial services, while older people were significantly less likely to use internet or phone banking services.
Mr McDonnell said: “High street bank closures have become an epidemic in the last few years, blighting our town centres, hurting particularly elderly and more vulnerable customers and local small businesses whilst making healthy profits for themselves.
“It’s time our banks recognise instead that they are a utility providing an essential public service.
“Only Labour will put in place the legal obligations needed to bring banks into line and stand up for our high streets, communities and small businesses.”
The plan was dismissed by the Conservatives.
Tory vice-chairman Stuart Andrew said: “Labour’s plan for our high streets would see corporation tax going back up to 28% and £500 billion of extra debt, all under a Labour leader who said that we should not be afraid of debt or borrowing.”