Skip to content

Scottish politicians suggest bank branch closures should be subject to consultation

A group of MPs has called for new legislation to stop banks abandoning Scottish towns. A report published by the UK Parliament’s Scottish Affairs Committee calls on the UK government to obtain a commitment from banks that they will not close “the last branch in town”.

The MPs said that in the event they refuse, new laws should force them to stay. Scotland has lost about a third, 610, of its bank branches in the past eight years, proportionally more than anywhere else in the UK, MPs say. The politicians also suggest that bank branch closures should be subject to public consultation, with the impact of such a move on vulnerable groups being considered. The loss of ATMs is also detailed in the report, which suggests that a strategy should be put in place by the government on access to cash.

Committee chairman, Pete Wishart MP, said: “It is disgraceful that banks think they can abandon Scottish towns with no access to essential financial services. Last year, my committee demanded that RBS halt their march of bank branch closures, but since then the picture seems to have just deteriorated further. In 2018 in Scotland, 355 ATMs were shut down, and bank branches continue to close at an alarming rate. Scottish communities are becoming ‘cash free’ against their will and it is time the government stepped in to intervene. Committee is calling on the government to stop banks from closing the last remaining bank branch in town. It is essential that towns are left with at least one bank, so if the banks won’t make this commitment themselves, the government should consider legislating.”

Andrew McRae, from the Federation of Small Businesses (FSB), said: “Losing a local bank branch makes it more difficult to run a business in an area, as well as leaving another ugly gap on a high street. MPs are right to underline the impact of the withdrawal of the banks on people and businesses. Swift action is now needed from policymakers to defend our remaining local financial infrastructure; to bring empty premises back to use; and to oversee the deployment of alternative facilities for left-behind places.”

 

Article originally appeared on Scottish Legal News

The Institute cannot confirm the accuracy of this story or confirm that it presents a balanced view. If you feel this is inaccurate, we would welcome your perspective and evidence that this is the case.

Sign up to receive our newsletter

    
 
 
 
 
 
 
 
By signing up to our mailing list, you agree to our terms and conditions. You can unsubscribe or change your subscription preferences at anytime by clicking here.
 
Scroll To Top