Ten branches of RBS earn reprieve – but more wanted

Ten Royal Bank of Scotland branches previously earmarked to shut will be kept open until at least the end of this year.

The publicly-owned bank announced the reprieve following an intense public outcry, but the branches in rural Scotland offered a lifeline will still need to convince an independent reviewer they can remain viable.

Biggar, Castlebay on the island of Barra and Inveraray were among those spared, but 52 branches remain earmarked for closure.

The announcement comes as Rbs chief executive ross mcewan was summoned to give evidence to the Commons Scottish affairs select committee.

Royal Bank of Scotland has announced that ten of its branches in rural Scotland are to be given a stay of execution and will remain open until the end of the year.

The step has been taken following the outcry over the publicly-owned bank’s decision to close 62 branches across the country.

The long-term future of the ten branches will depend on whether they can convince an independent reviewer that their business has increased enough to make them a going concern.

Of the 62 branches earmarked for closure, 52 will close as planned. But those in Biggar, Beauly, Castlebay on the island of Barra, Comrie, Douglas, Gretna, Inveraray, Melrose, Kyle and Tongue are to be spared for the time being.

The reprieve comes just two months after the RBS group – still 72 per cent owned by the taxpayer – announced plans to close 259 of its premises across the UK comprising the 62 Scottish branches plus 197 Natwest branches south of the Border.

However, RBS chief executive Ross Mcewan will be summoned to give evidence to the Commons Scottish affairs select committee despite the reprieve, with several members of the committee voicing disappointment that the bank’s proposals do not go further. Shadow Scotland secretary Lesley Laird MP said Mr Mcewan “must be compelled to attend” the committee, which met yesterday afternoon in private to consider RBS’S offer.

“This is at best a short-term reprieve,” Ms Laird said. “What happens to the other 52 branches, many of which are in the most deprived areas across Scotland?”

The move should mean that around 20 RBS staff members will see their jobs continue for the remainder of the year.

When originally announced, it was estimated the plan to close 62 branches would lead to around 160 Scottish redundancies. Critics also said that 13 of the 62 targeted branches were “last banks in town”.

Despite yesterday’s partial about-turn, the towns of Bannockburn, Stepps, Carnwath and Kilwinning will be losing their last banks. Nine of the ten branches reprieved are classified as last banks in town, the exception being Kyle.

RBS has also come up with a series of initiatives in an attempt to maintain the bank’s links to local communities.

Key to that will be a proposal to give branch premises to community groups if they can demonstrate they have a viable business plan to use the buildings for three years.

In addition, RBS intends to set up contactless terminals for business customers.

RBS managing director for personal banking, Jane Howard, said: “We are com- mitted 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 … 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 and if there is a sustained and viable increase in both then we will reconsider the closure of the relevant branch.”