Chancellor to act over cash machine shortage
Chancellor Rishi Sunak is poised to commit to new laws protecting the future of local cash machines and bank branches in this week's Budget.
The moves will aim to ensure that people who rely on cash, including vulnerable groups and local communities 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 Wednesday’s 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 UK could take inspiration from countries like Sweden where the law requires large banks to provide facilities for withdrawing cash.
The rapid disappearance of many bank branches and free-to-use ATMs has fuelled concerns about people's ability to continuing accessing coins and notes despite the rapid growth of car transactions.
ATM network Link has committed to replacing cash dispensers where there is no free machine or Post Office counter within one kilometre.
Consumer group Which? recently wrote to Mr Sunak calling for legislation that protects access to cash for as long as needed.
Anabel Hoult, chief executive of Which?, said: “The cash system faces irreversible damage within the next two years, so we look forward to working with the Government and regulators to ensure this commitment is swiftly turned into action."