Contribution
The hon. Member makes a pertinent and relevant point. That is why these matters need to be taken into account; it cannot be purely about access to cash, which is all that Link currently needs to consider. As long as there is an ATM in some corner within a mile or two of someone’s community, that is deemed to be sufficient to justify any bank closing anywhere. However, it is not sufficient.
Now that the Penzance branch has closed, of the 39 Lloyds branches in Cornwall and on the Isles of Scilly, only two are left in Cornwall. People on the Isles of Scilly have to travel by ferry, paying £220 for a return ticket to the mainland—as well as for an overnight stay and a two-hour bus ride to Truro and back—to get access to face-to-face banking. That is the reality my constituents face to get access to the services.
Why are face-to-face transactions important? They are important for identity verification, resolution of fraud or scams, handling significant disputes or matters of banking interpretation, complex account queries, CHAPS and international payments, business cash deposits, and change-giving services. They are also important when there are bereavement or probate matters, as well as for community organisations, when counter-signatories are required, and for sports clubs and voluntary organisations. Those things are absolutely essential to the life of such organisations.
I am conscious of time; although I could say a great deal more on this important issue, I want to make sure that other hon. Members have an opportunity. Since 2015, around 6,700 branches—68% of the whole banking network—have closed. That is significant, and the impact on our communities has been fundamental and wide-ranging. On the day in January this year that Lloyds decided to close its Penzance branch, the bank had been in the most iconic building in the centre of our town, Market House, for literally 100 years. It was still serving 33,000 customers. Twenty-nine per cent of those local customers used the branch exclusively, and more than 1,000 regular weekly users—around one in 20 of the town’s residents—relied on it. The local population is older than the average and, as I mentioned, there was no consultation on the closure. Banks are able simply to ignore those facts.
Another pattern is that the banks will refer to the significant increase in people using apps, online banking, telephone banking and other alternatives to the face-to-face banking available on the high street. Often, that increase is a result of enforcement by the banks themselves; they fail to take into account that it results from their policy of making it difficult for people to use face-to-face services. Indeed, when customers go through the front door of branches that the banks are trying to close down, they are often met by someone who triages them out of the door again, to go and use an app or online service that they do not want to use. The banks are creating the circumstances in which they can justify closing branches.
I hope that the Minister will consider strengthening the regulations, recognising the limitations that exist, and challenging the banks on the services they are providing, as well as the dismissive way in which they ignore the most vulnerable in society—the people who will be suffering the most. In towns such as Penzance, the impact on the viability of the town is significant. When high street banks have closed in other towns, footfall—the lifeblood of commerce in the centre of a market town—has been significantly depleted as a result. That is certainly one of the great fears in Penzance if the other bank branches fall like a house of cards after the closure of Lloyds. We are trying to stop that by demanding that the other banks demonstrate their loyalty to the town. One by one, we are getting them to commit their loyalty, but only for a limited period, up to 2030; we need to go way beyond that.
I hope that my comments have helped to set the debate up for others to contribute, and I hope that the Minister is listening.