“Vital” banking sector needs support, says MP
Action on the future of the banking sector has been demanded by politicians.
They have urged the UK Government to include continued access to cash for communities in their legislative programme.
It comes in the wake of a string of cost-cutting branch closures initiated by leading high-street banks, including Bank of Scotland, HSBC, LLoyds and NatWest.
Now East Renfrewshire MP Kirsten Oswald has joined more than 70 politicians who have signed an open letter to chancellor Rishi Sunak, urging him to enshrine“vital”access to cash in the Westminster government’s legislative programme.
Although the use of cashless transactions such as contactless and mobile phone payments continues to grow and provides a convenient forum for many, not everyone can or wants to use such methods.
And fears are rife that communities could be cut off from cash as banking giants continue to place obstacles in the way of residents who wish to use in-person banking, by closing branches and slashing opening hours.
Barclays, HSBC, Bank of Scotland owners Lloyds and RBS group NatWest have all announced closure programmes, with up to 180 additional branches earmarked to go.
Bank of Scotland customers were recently disappointed by a further tranche of branch closures, which will see the withdrawal of the last available branch in Clarkston.
Elderly and vulnerable residents are also set to be hard hit, with many of them requiring use of branch services.
The sector - which has also been criticised for keeping short opening hours in branches which have escaped the axe - has been repeatedly urged to establish shared outlets in communities where the last links to cash access are at risk.
But the UK Government has been accused of “failing to deliver” on promises to safeguard cash access through legislation for the industry.
The politicians who have penned the cross-party letter hope the Queen’s speech next month will set out a legislative programme for the year ahead which enshrines the pledge.
Their letter calls for legal measures to be introduced without further delay and calls on the Chancellor to recognise that cash has a “practical and vibrant” role to play in meeting the needs of both business and the wider economy.
MP Kirsten said:“The UK Government must stop dithering and take action to avoid a hollowing out of the UK’s cash infrastructure, leaving communities unable to withdraw or deposit cash.
“As we have experienced here in East Renfrewshire, the banking sector is no longer living up to the commitment to protect the last bank branch in town.
“They are placing an increasing reliance on post offices, but the post office sector is underfunded to take on the full burden of protecting access to cash.”
The SNP’s Westminster Deputy Leader added:“The banking sector and the UK Government must act now to protect the role that cash can continue to play in local communities.”