Many UK residents are being left without access to local bank branches(Image: Google)

Lloyds, Santander, Halifax and Barclays warning over 'urgent' issue

by · BristolLive

MPs are demanding immediate action as many UK residents lack local banking services. An early day motion has been signed by 14 MPs, calling out the urgent need for more banking hubs to replace closing branches, with a particular focus on the rural town of Ilminster in Somerset.

The town no longer has any bank branches, forcing residents to undertake a 30-minute drive to Taunton to access major banks such as Barclays, Halifax, Santander, Lloyds, NatWest and HSBC. The motion highlights "the importance of maintaining access to in-person banking and cash services", stating that rural constituencies especially "urgently need more banking hubs".

Banking hubs, managed by the Post Office, offer over-the-counter services for many leading banks in areas where branches have closed. Over 75 are currently operational, with plans to increase this number to 162.

The Financial Conduct Authority recently introduced new regulations requiring banks to maintain cash services when a branch is closing. The early day motion has been endorsed by MPs from various parties, including Labour MPs Brian Leishman and Tristan Osborne, and former Labour leader Jeremy Corbyn, who now sits as an independent.

Below is the full list of MPs backing the cause:

  • Adam Dance
  • Ellie Chowns
  • Steff Aquarone
  • Chris Coghlan
  • Caroline Voaden
  • Edward Morello
  • Wendy Chamberlain
  • Brian Leishman
  • Jamie Stone
  • David Chadwick
  • Tristan Osborne
  • Jeremy Corbyn
  • Liz Jarvis
  • Andrew George
  • Claire Young
  • Sarah Gibson.

LINK previously reassessed 182 branch closures to evaluate their impact on local communities, and as a consequence ordered the launch of 15 new banking hubs.

These new banking hubs will be set up in these locations:

  • Sidcup (London)
  • Normanton (West Yorkshire)
  • Hailsham (East Sussex)
  • Frome (Somerset)
  • Sheerness (Kent)
  • Whitley Bay (Tyne and Wear)
  • Rugeley (Staffordshire)
  • Newquay (Cornwall)
  • Market Harborough (Leicestershire)
  • Thetford (Norfolk)
  • Monmouth (Wales)
  • Morecambe (Lancashire).