MPs demand action over 'concerning' NatWest, Lloyds, Santander, Barclays trend

An early day motion from MPs is calling for banking services to be protected amid a swathe of closures. MPs have filed an early day motion calling for the protection of banking branches in some areas of the country, as more and more shut.

The motion states: "This House is concerned about the lack of banking services in rural towns such as Ilminster, which has yet to receive a banking hub; recognises the importance of maintaining access to in-person banking and cash services."

It "notes that banking hubs are a key alternative for communities that have lost access to bank and building society branches" and "acknowledges that rural constituencies in particular (due to their local geography, availability of public transport, and lack of support for utilising digital services) urgently need more banking hubs."

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The motion is sponsored by five Liberal Democrats MPs and one Green Party MP. Highlighting the issue in Ilminster in Somerset, the motion calls for changes to protect elderly pensioners and vulnerable banking customers in rural areas.

In an update for locals, the local authority in Ilminster said this month: "The Town Council had another meeting with Link and Cash Access UK to understand the new bank hub criteria and discuss a new application. It was an invaluable opportunity as we gained a lot more information regarding applying for a banking hub than we had before.

"The legislation changed on 18 September, and Link and Cash Access UK are now regulated by the FCA, and the eligibility criteria would appear to have changed in Ilminster’s favour, although it is complex. Therefore, officers have sent in an application form with the additional information requested.

"Please be patient as this process can take up to 12 weeks. If it’s a borderline case, they will come to Ilminster and talk to local residents and businesses to gain further information about the problems everyone has faced since the closure of Natwest and Lloyds.

"In the meantime, please keep checking the Town Council’s Facebook page and website for further updates." As well as NatWest and Lloyds, Santander and Barclays have also been responsible for a score of closures in 2024.