RBS U-TURN OVER AXED BRANCHES
Banking giant bows to pressure over closures
ROYAL Bank of Scotland has announced a partial U-turn over plans to shut dozens of branches following a massive public outcry.
The banking giant yesterday said it had put proposals to close ten branches north of the Border on hold.
In December, it was accused of ‘deserting’ customers after it said 62 high street sites would shut. Almost 160 staff were told they would lose their jobs in June and July.
In some circumstances, customers would have had to travel 40 miles or pay for a ferry journey to reach their nearest bank.
But yesterday, politicians, communities and union leaders welcomed the decision – although it was also branded a ‘stay of execution’ because the branches could still be axed unless business picks up.
SNP Westminster leader Ian Blackford was
criticised after announcing the RBS plans and trying to take credit for them at the weekend.
It is understood senior figures at RBS were furious that he released details of the proposals before members of staff were told. They felt his actions put the whole support package in jeopardy.
It led to a furious row in private sessions of the Scottish Affairs Committee, with members from other parties raising concerns he was trying to ‘take credit’ for its work highlighting concerns about the closure plan – and potentially scuppering the whole deal.
Announcing RBS’s decision yesterday, Jane Howard, managing director for personal banking, said: ‘We are committed to ensuring our customers and communities are able to continue accessing quality banking services.
‘Having listened to the concerns of customers, communities and elected representatives from all political parties, we have decided to keep ten branches open until the end of 2018.
‘During this period, we will monitor the level of transactions and new income at each branch. If there is a sustained and viable increase in both, then we will reconsider the closure of the relevant branch as part of a full independent review.’
The bank, still majority-owned by UK taxpayers, confirmed ten branches will stay open until at least the end of this year: Biggar, Beauly, Castlebay/Barra, Comrie, Douglas, Gretna, Inveraray, Melrose, Kyle and Tongue.
But the other 52 will still close in June or July.
This will break a promise to customers in a charter published in 2010, when RBS said it would ‘never close the last branch in town’.
It was confirmed last night that RBS chief executive Ross McEwan has been asked to appear before MPs to explain his decisions. The Scottish Affairs Committee has requested he provides further evidence at a future session, likely to be in the coming weeks.
John Lamont, Tory MP for Berwickshire, Roxburgh and Selkirk, said: ‘RBS has listened in part to some concerns, particularly over the need to keep ATMs in rural communities.
‘But these revised plans are only a stay of execution for a fraction of its branches threatened with closure. As such, it is nowhere near enough.
‘With the SNP Government having failed to roll out digital broadband to so many rural communities, local bank branches are a vital lifeline. Instead of a partial climbdown, RBS must fundamentally rethink its closure plan.’
In addition to keeping the ten branches open, RBS has said it will look to open new branches, improve the availability of ATMs in areas where there are closures and review the opening hours of its remaining branches.
Andy Willox, Scottish policy convener for the Federation of Small Businesses, said: ‘Many businesses in the locality of these branches will be pleased they’ve been granted a reprieve. But for firms who use the other 52 branches, today’s news will be of little comfort.’
The Unite trade union branded the announcement ‘a stay of execution’ and called on the bank to make clear what would happen to the other branches that have been earmarked for closure. It also demanded a moratorium on any further closures.
A Scottish Government spokesman said: ‘We welcome the news RBS has decided to keep some branches open, for the time being at least. But there will still be many communities and RBS staff concerned about their future.
‘The issue of local branch closures is a concern far wider than RBS and a sector-wide solution needs to be found that helps keep our communities alive. We will continue to work with all banks to ensure essential services remain accessible to all.’
IT is clear that RBS has listened to the concerns of the public over its latest round of branch closures, which would have deprived dozens of communities of a key service.
Although the U-turn is partial, it does mean a stay of execution for ten branches. Business there will be monitored and it may yet be that demand proves sufficient to keep them open long-term.
The issue of bank access is a thorny one. Yes, footfall in physical branches – which are expensive to maintain – has dropped as customers are increasingly directed to online services. But for many, particularly elderly, customers, the internet is a closed book. And such is the patchy nature of Scotland’s broadband coverage, many who would like to bank online cannot do so.
Equally, an app is useless for businesses who need to lodge cash or set up a float when their shutters go up of a morning.
One man who has not emerged well in all this is SNP Westminster leader Ian Blackford.
While the Scottish affairs committee had been working towards a solution on a crossparty basis, Mr Blackford was so desperate to claim sole credit that he jumped the gun and announced details even before RBS staff had been told what was happening.
Critics say the MP came within an ace of scuppering the deal – and it is difficult to overstate how selfish and short-sighted his actions have been.
Mr Blackford’s ham-fisted bid to corner all the glory reflects very badly on him. It has angered RBS, his colleagues on the Scottish affairs committee and, most importantly, the public. Mr Blackford’s overweening ambition is clear – as is his spectacular lack of judgement.