Ian Lavery

It feels really strange to agree with so many Conservative Members—it does not make me terribly comfortable, but it shows the power of the argument and, importantly, the support that it has across the House, which is relatively rare. The number of interventions that I have taken has meant that lots of the points in my speech have already been made. I will try to be as quick as possible. Link does a decent job under the criteria that have been set, which really need to be changed. Link can pause a bank closure but cannot stop one, or set its own timetable for the establishment of banking hubs. Moreover, there is no provision for the FCA to initiate retrospective assessments of the need for banking hubs in areas where banks have left the high street, resulting in banking deserts, many years ago, prior to the 2023 Act. The Government simply must take a fresh look at this issue and bring forward the necessary legislation to force the banking industry to fulfil its social responsibilities. The customers and communities from whom they have extracted so much profit over the years deserve nothing less. We should not forget that these are the very same banks and financial institutions that we had to bail out in 2008-09 because of their reckless pursuit of ever-increasing profits. They then made fortunes through the quantitative easing that the Bank of England initiated to save the economy after the crash that they caused. They are now abandoning the very taxpayers who bailed them out. As I mentioned, there has been a dramatic reduction in the number of banks on our high streets. In 1986 there were 21,643 bank and building society branches in the UK; by 2024, around 6,800 were left. Clearly, the switch to online banking has had an impact, but even those of us who use online banking sometimes need the certainty that a branch offers. The House of Lords April 2025 report “Closure of bank branches: Impact on rural communities” quotes Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown: “The closure of bank branches is a vicious circle. The more that close, the more people move online, so there are fewer people relying on high street branches, so more of them close. The pandemic picked up the pace around this ever-decreasing circle, closing more branches temporarily and causing online banking to spike.” The banks say that fewer people are using branches. If a high street branch closes, people cannot use it, as it is not there any more. Does that not result in an automatic reduction in usage? This is not rocket science. It is a vicious circle, which is why we need change from the Government. Northumberland, my home county, has lost more than half of its bank branches since 2015. In my constituency of Blyth and Ashington, the large villages have been left without high street banks for more than a quarter of a decade. Blyth, Northumberland’s largest town, will be left without a high street bank in a few months’ time, though a building society will remain—the point raised by my hon. Friend the Member for Eltham and Chislehurst (Clive Efford).