Clacks £17m threat over bank closures
Council could end investment
Clackmannanshire Council will consider withdrawing the £17 million they have invested in RBS and the Bank of Scotland.
Both banks have announced that they would be closing branches in the area.
Council leader Les Sharp won unanimous support for a motion at a council meeting on Tuesday which says they will assess their options.
It said: “Council instructs relevant officers to report on possible options to transfer investments by this community to financial institutions and banks that continue to invest in our community”.
SNP councillor Sharp says that if banks are not prepared to invest in the community the people of Clackmannanshire will look to avoid investing in them.
Stirling Council leader Scott Farmer told the Observer that he “fully supports” the stance taken by his party colleagues in Clackmannanshire.
He was due to meet Councillor Sharp yesterday (Thursday) to discuss the move.
The Observer understands that Clacks Council has around £17.5 million invested in the two banks, with the majority in the Bank of Scotland.
The RBS branch in Alloa is scheduled to close on June 19 next year, the Bannockburn branch is to close its doors on May 15, the Bridge of Allan bank on June 11 and Dunblane branch on May 20.
Bank of Scotland branches in Alva, Denny, Bridge of Allan and Stirling are also due to shut down.
Councillor Sharp called on local authorities across Scotland, along with other public sector organisations, to follow their example and take on the banks by hitting them in the pockets.
He said: “We got a report that reminded us that on behalf of this community the council is investing around £17 million in the same banks that are now proposing to leave this community without necessary, long-established banking services.
“So the message to those banks is simple: if you are not prepared to invest in Clackmannanshire then the people of Clackmannanshire will seek to avoid investing in you.
“I’ll be talking this week with SNP council leaders from across Scotland and inviting them to follow our lead and I hope that other political parties will put their communities first too.
“And it doesn’t stop with councils. Other publicly owned organisations such as health boards, Scottish Water, SEPA and local government pension funds also bank with these people and they too should be using their muscle to influence the banks’ decisions.
“Banks understand money so I call on all of these bodies to join us in exploring how we can hit the banks where it matters to them: in their pockets”
Councillor Farmer added: “Last week I issued a statement with regard to RBS closures, condemning their callous disregard for the communities they purport to serve.
“I will be writing to Stephen Kerr MP, demanding that this Tory government intervene in what is a state-owned bank.
“Stirling Council is committed to financial inclusion for our communities and will be reviewing options as the campaign to prevent closures continues.
“I fully support the stance taken by our colleagues in Clacks.”
A petition launched in Bannockburn to save the RBS branch in the town gathered more than 2000 signatures.
Residents and community councillors in Dunblane have written to RBS to ask that representatives attend a public meeting there in January.
A debate on the planned RBS closures will take place in the House of Commons next week following a question from Stirling MP Stephen Kerr.
The debate will take place on Monday, allowing MPs from communities across the country to talk about the impact the closures will have on their communities.
Mr Kerr has already written to the CEOs of RBS and the Bank of Scotland to share his views.
Banks understand money so hit the banks where it matters to them: in their pockets