I beg to move,
That leave be given to bring in a Bill to place a duty on major high street banks to provide banking services in post offices; to make associated provision about access to post office services, including for elderly and vulnerable people; and for connected purposes.
I should declare at the outset that, prior to my election, in a former life, I was once a sub-postmaster.
Since 1988, some 14,000 bank branches have closed on our high streets, and next year there will be fewer than 6,000 left. Shareholder return is all that drives them. Shutting branches and getting rid of cost has happened for over 20 years. Where has the care gone for our communities that matter the most? Not everyone can go online when the bank branch shuts. What if they are elderly, vulnerable, do not drive or live on a poor bus route to visit the nearest alternative? I want to be a champion for our high streets and for our elderly and vulnerable, because they matter and it is about time we did something about this.
My Banking Services (Post Offices) Bill is about common sense. It will strengthen the current banking framework to ensure that local communities always have access to the banking services they need to function on the high street. That will be facilitated by the introduction of a mandated agreement to provide a minimum level of banking service through a suitable alternative, ensuring that customers are able to access vital banking services in their local area.
That is necessary because this trend is increasing. Between 2010 and 2018, about 5,000 bank and building society branches in England closed, at a rate of almost two every day, with four times more closed in deprived communities than in wealthy areas. Sadly, it is likely that those figures will continue to rise. The pandemic has already accelerated bank closures, with more closure programmes announced.
Inevitably, banks will promote digital banking as the way forward in a post-covid-19 world. However, those who cannot use online banking, whether that is due to personal choice or other issues that make it hard to use digital services, must not be forgotten. It is understandable that banks need to make decisions that keep their businesses operational, but where is the corporate social responsibility? Who was it that rescued the banks during the banking crisis? It was UK taxpayers—the very ones who now suffer when the banks close.
We should further worry because, as banks continue to pull out of economically distressed areas, they are often replaced with more predatory forms of financial institutions, leaving vulnerable people at further risk. If people cannot access banking services, how many will turn to payday lenders? We know that vulnerable people are twice as likely to have used high-cost credit because of the lack of alternatives.
What are those alternatives? The totally inconvenient solution where the next nearest branch is miles away, or online services. That is not good enough. It may be a cheaper option to the banks, but it comes at a greater cost to the most vulnerable in society, who cannot always travel or use digital or phone services, and do not have the support they need to adapt when this type of change occurs. What about our local residents, the small businesses that rely on the banks, or the employees who face losing their jobs—many do, year after year—when banks close and leave town? We have a duty to find an alternative. The Bill will provide the safety net, that insurance policy, and a real alternative to the harsh reality that many face when banks make the decision to close a branch. It will ensure that other authorised financial institutions will always provide the facilities needed and ensure that no one is left behind.