Council threatens to review its contract with RBS following closures.

Recent contract with bank under review after branch closures

Perth and Kinross Council has threatened to review its contract with the Royal Bank of Scotland after the shock closure of five local branches.

Bank bosses are axing rural services in Comrie, Kinross, Pitlochry and Aberfeldy, as well as an outlet in Perth city centre.

RBS said its decision – part of a massclosure programme across Scotland, affecting around 160 jobs – was based on a dramatic drop in customer numbers.

Now Perth and Kinross Council boss Ian Campbell has been asked to write to RBS chiefs urging them to reverse their decision.

If they refuse, the council will review its banking arrangement with RBS and consider “alternative options”.

The local authority agreed a four-year banking contract with RBS in April, following competitive tendering.

Independent councillor Xander McDade, who represents the Highland ward, raised a motion at yesterday’s full council meeting urging Mr Campbell to encourage RBS to consider other solutions such as reduced opening hours and shared premises with other banks.

“This is a huge issue for the businesses and the people of my ward,” he said.

“A significant amount of people in my ward can’t access fast enough broadband for emails, let alone internet banking.”

An addition to the motion put forward by SNP councillor Mike Williamson suggested that the council could part ways with RBS.

A similar proposal was made by Dundee’s Labour councillors.

Mr Williamson said: “All banks are pushing customers to do their banking business online, but not everyone has access to broadband services or can use computers.”

He added: “Businesses will be expected to take on additional insurance and also be faced with the option of travelling long distances or standing outside a mobile bank with large amounts of cash.

“In the event that RBS fails to reverse its decision to close branches in our communities, this council will instruct its head of finance to review current banking arrangements with RBS and report back with alternative options.”

Mr Campbell agreed to write to RBS chairman Philip Hampton and chief executive Ross McEwan, as well as Chancellor Philip Hammond.

But he described Mr Williamson’s call to consider alternative banking options as “opportunistic”.

He said: “As a council, we are always regularly reviewing our banking services and I feel that that is how we should continue.”

Mr Campbell has already met RBS regional manager Paul Dykes and discussed the possibility of introducing mobile banking to affected areas.

This council will instruct its head of finance to review current banking arrangements with RBS and report back

Theresa May was accused of double standards over her government’s refusal to intervene in the closure of Royal Bank of Scotland branches.

Ian Blackford, the SNP’s Westminster leader, said the Chancellor George Osborne was happy to step in over the departure of the taxpayer-owned bank’s chief executive four years ago.

The Courier is campaigning against the branch closures, which will see RBS retreat from eight towns and villages in Tayside and Fife.

Speaking at Prime Minister’s Questions, Mr Blackford called on the Prime Minister to “show some leadership”.

Mr Blackford said: “If it was right in 2013 for the Chancellor of the Exchequer to intervene on the departure of the chief executive officer then of course it’s quite right that the Government takes its responsibilities when the last 13 branches in town are going to be closed in Scotland.

“Prime Minister, show some leadership, stand up for our communities, bring Ross McEwan (RBS chief executive) into 10 Downing Street and tell him you’re going to stand up for the national interest and stop these bank closures.”

Mrs May said the departure of chief executive Stephen Hester in 2013 had the “support and approval” of Mr Osborne as the representative of the public’s majority interest in RBS.

She added: “The decision on individual bank branches is of course an operational decision for the bank, but he talks about standing up for communities and standing up for people across Scotland.

“I have to say to him that’s a bit rich coming from an SNP which in Government in Scotland is going to increase taxes for 1.2 million Scots.”

Picture: Gareth Jennings. The RBS branch on South Street in Perth is earmarked for closure.