08 Sep 2026
MPs from across the political spectrum have called for rural communities to be better served by face-to-face banking, warning that branch closures, poor transport and digital connectivity can combine to leave residents and businesses without practical access to essential services.
A Westminster Hall debate on 1 September, heard concerns from MPs representing rural communities across the country about the impact of continued bank branch closures.
Opening the debate, Caroline Voaden MP said more than 6,000 bank and building society branches had closed over the past decade. She highlighted the particular impact in rural areas, where poor connectivity, limited public transport and longer distances can make reaching alternative services difficult.
Access To Cash Is Not The Same As Access To Banking
A key theme throughout the debate was the distinction between access to cash and access to wider face-to-face banking services.
Current legislation protects access to cash, but not wider in-person banking services. MPs highlighted the importance of face-to-face support for issues such as bereavement, fraud and scams, powers of attorney and more complex transactions, as well as for rural businesses needing to deposit takings or obtain change.
Concerns were also raised about whether the criteria for banking hubs adequately reflect rural circumstances.
Caroline Voaden told MPs that when LINK assesses rural locations, it considers whether alternative cash facilities are available within three miles or 30 minutes by public transport. She argued this can fail to reflect the reality for people in surrounding villages who may first have to travel into a market town.
Other MPs highlighted similar challenges. Graham Leadbitter MP said some communities in his constituency are 65 miles from their nearest bank branch, while evidence presented by Patricia Ferguson MP, Chair of the Scottish Affairs Committee, called for geography to be considered when defining reasonable access to in-person banking.
Government Review To Report In October
Responding for the Government, Economic Secretary to the Treasury Lucy Rigby MP acknowledged that branch closures can have a significant impact in rural areas, particularly where transport links are limited. She noted that 3.3 million current account holders did not bank online or through a mobile app in 2024.
The Government’s independent Access to Banking Services Review, chaired by Richard Lloyd, is examining whether changes in access to in-person banking are causing harm, who is most affected and whether existing alternatives meet communities’ needs. The Minister confirmed that the review will report in October.
More than 280 banking hubs have been announced, with 240 open, towards the Government’s commitment of 350 by the end of this Parliament. However, MPs questioned whether decisions about where hubs are located should look beyond access to cash and give greater consideration to wider face-to-face banking needs.
For rural communities, the review will provide an important opportunity to consider what meaningful access really looks like. Distance, public transport, digital connectivity and the role of market towns in serving surrounding villages all matter when determining whether an alternative banking service is genuinely accessible.
