Move for new laws to protect access to cash withdrawals

CHANCELLOR RISHI Sunak is poised to commit to new laws protecting the future of cash in next week’s Budget.

The moves will aim to ensure that people who rely on cash, including vulnerable groups and local communities across the UK, can access it as and when they need it.

The Treasury is expected to start talks with the industry and regulators - the Bank of England, Financial Conduct Authority and Payment Systems Regulator around legislation immediately after the March 11 Budget.

One area being looked at is whether to give watchdogs new powers that ensure that banks continue to properly support their customers’ cash needs. The

Treasury also wants the banks to create a new system for moving money around the country, so cash remains accessible for those who use it every day.

International examples which the UK could take inspiration from include Sweden, which legislated to require large banks to provide their customers with facilities for withdrawing cash.

The rapid disappearance of many bank branches and free-touse ATMs has fuelled concerns about people’s ability to continue accessing coins and notes.

The finance industry has set up various schemes to help fill gaps in cash access, but many have argued that legislation is needed to protect the long-term future of cash. ATM network Link has committed to replacing protected cash dispensers where there is no free machine or Post Office counter within 0.6 of a mile (one kilometre).

It also recently set up a “request an ATM” service, allowing communities to directly ask for a machine to be installed in their area.

Meanwhile, Mr Sunak, who is the MP for Richmond, will not unveil the National Infrastructure Strategy to invest £100bn boosting the economy and tackling the climate crisis until after the Budget.

The plan to boost transport connectivity and work towards achieving net-zero emissions by 2050 had been set to be published “alongside” the Budget. But Mr Sunak is not now expected to unveil the plans seen as being crucial to the Government’s “levelling up” agenda until a later date.