Thank you, Ms Rees. I also thank the Backbench Business Committee for allowing me to make a statement on our report, “Access to cash in Scotland”, which we published on Monday. It is great to see so many colleagues from Scottish constituencies here today. [Interruption.] And of course from Northern Ireland—I cannot possibly forget the hon. Member for Strangford (Jim Shannon). I look forward to their questions.
We know that lack of access to cash continues to concern many of our constituents, and it impacts on some of the most marginalised and vulnerable people we represent. The Scottish Affairs Committee has taken a long-term interest in the issue: our predecessor Committee released a report in 2018. We looked at the issue in the round and made a number of recommendations. We have also taken an interest in banking infrastructure right across Scotland, publishing reports and holding sessions on that subject over the past few years.
Our inquiry took evidence from representative groups and organisations; we also invited members of the public to complete a public survey on access to cash in Scotland, noting their own experiences and views. We of course thank everyone who contributed to our investigation, as well as those who responded to our public survey.
A key recommendation of the previous report, which the Committee published in 2018, was that the Government consider legislating to ensure that communities continue to have access to vital banking services. We are therefore delighted that the Government have done just that, by including a Bill in the Queen’s Speech to ensure that happens. The financial services and markets Bill is a positive development and a constructive response to the efforts of the Committee and the many representations that have been made by colleagues from across the House. If we have any disappointment, it is that the Bill may be a bit too late because we have lost many elements of our banking infrastructure in the intervening years. We understand that the Government want to conduct a wider and all-inclusive consultation prior to publishing their Bill, but it concerns us that we have lost so many bank branches in the intervening years, and we know that banks are now considering rushing closures ahead of any legislation being passed by the House.
The picture today looks considerably different from when the previous Committee investigated access to cash. The pandemic has changed everything, and the rush to digitalisation and the increased use of digital facilities for personal and business banking have continued. The pandemic accelerated that move, but cash payments are still the second most used form of payment and account for 17% of all transactions.
Currently, 5.4 million people, or about 10% of UK adults, are reliant on cash. In Scotland, that is equivalent to around 500,000 people—half a million of our over 5 million population. In 2019, the “Access to Cash Review” found that over 8 million adults, or 17% of the UK population, would struggle to cope in a cashless society. That was reflected in the public survey I mentioned. The majority of our respondents held very negative views about the potential for the UK to become a cashless society. Some 67% of those who responded to our survey told us they thought it would be “very negative” if the UK became a cashless society.