Scotland worst in Britain for bank closures
BANK branches in Scotland are closing at a faster rate than those in the rest of the UK, according to a new report.
Statistics from the Competition and Markets Authority show that between 2013 and 2014, the number of bank branches north of the Border fell by 7.7 per cent – from 1,123 to 1,037.
Over the same period, the number of branches in England fell by 5 per cent, 5.7 per cent in Wales and 6.4 per cent in Northern Ireland.
Last night the Federation of Small Businesses (FSB) raised fears that closures will be problematic for their members, with high street footfall declining as a consequence.
The organisation has written
‘Disappearing from high streets’
to the Scottish Government and banking chiefs in Scotland asking for their views on the best way of minimising the impact of closures.
It has published a report stating that branch closures are damaging local economies and making it more difficult for firms to access banking services.
Andy Willox, FSB’s Scottish policy convener, said: ‘Banks are disappearing from Scottish high streets and this poses problems for both local firms and communities.
‘We recognise that more businesses are using online banking. But, as our report highlights, these services don’t fill the gap left by boarded-up branches.
‘Further, because Scotland lags behind England in terms of both mobile and broadband coverage, the impact of the withdrawal of local services is exacerbated. It is unfortunate too that other large private and public bodies are choosing to consolidate their estates and withdraw to urban centres.
‘In our view, there’s insufficient scrutiny of the local economic impact of these closures and the cumulative impact is significant. This is an area where we expect leadership from councils and the Scottish Government.’
Scottish Tory chief whip John Lamont said: ‘Bank branches have been a staple of Scotland’s high streets for generations, and it’s depressing to see them go at such an alarming rate. They are important parts of communities, and help other businesses by encouraging people to come into town.
‘Most people will acknowledge, with the advent of internet banking, the role of the branch is changing.
‘But this can’t be used as an excuse for reckless cost-cutting which inconveniences the very many people who still visit the bank in person.’
Minister for Business, Innovation and Energy Paul Wheelhouse stated: ‘The way people carry out their day to day banking is changing, with many more transactions and services delivered digitally, and therefore banks must make commercial decisions based on the trend towards digital banking.
‘In response to such closures, Scottish Ministers have made clear that providers of banking services must also consider the needs of all in our society, including people based in rural areas and groups who are less able to access digital services.’