Banking Services: Rural Northumberland

In a statement delivered in the House of Commons, a minister addressed the issue of banking deserts across the country, where many people are cut off from accessing basic face-to-face banking services. The minister highlighted the situation in their constituency of Northumberland, where over half of the bank branches have been lost since 2015, with the town of Hexham experiencing a staggering 70% reduction, leaving only five branches remaining. The minister emphasized that the loss of these bank branches is not merely an inconvenience, but a "toxic cocktail" that damages the quality of life and hinders the growth of the rural economy. The services provided by bank branches are wide-ranging and impactful, catering to the needs of constituents during significant life events, such as large payments, mortgages, bereavements, and securing power of attorney. The minister stressed that the compassion, expert support, and guidance offered by these branches cannot be allowed to disappear as a consequence of the shift towards better digital services. The minister expressed concern for the impact on young people who want to start businesses but find it challenging due to the lack of face-to-face discussions, as well as older people who struggle to access cash, sometimes having to travel long distances on public transport to reach the nearest branch. The minister urged that these closures cannot be accepted as an inevitable outcome and called for action to address the crisis in banking services, particularly in rural areas.