Banking ‘deserts’ after 388 sites shut
HUNDREDS of towns have become banking deserts with 388 branches closing in two years, research reveals.
Places without local bank services include Westhoughton in Bolton, Chapeltown in Sheffield and Todmorden in West Yorks. The Labour analysis found 55 towns were left “bankless” despite being promised a hub six months ago.
The party says its plan to give regulators more powers could see at least 350 banking hubs quickly established.
Some 6,000 high street sites have shut since 2015 as customers go online but those who rely on cash, and many small firms, struggle to access services.
Hubs in areas where the last branch has shut allow customers of any bank to deposit and withdraw cash and cheques plus raise
queries about accounts – 42 have been set up.
Shadow city minister Tulip Siddiq said if in power she would tackle “ghost high streets” and give every community access to bank services.
She added: “The Government’s failure to roll out banking hubs has left Britain’s high streets in decline and cut off hundreds of thousands of people and small businesses from the services they need.
“Labour’s plan will bring banking services back to communities.”
Cat Farrow, of hub operators Cash Access UK, said it plans to have 100 open this year.
The Treasury said: “We know cash remains king for many, which is why we have protected access to cash in law, legislating to protect access to cash withdrawal and deposit facilities for people and businesses.
“This will support businesses to continue accepting cash by ensuring they have reasonable access to facilities to deposit it.”