Written questions by Cocking.

If she will bring forward legislative proposals to require LINK to amend its assessment criteria for establishing new banking hubs.

While the Government has no current plans to amend legislation, we continue to work closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 140 are already open. Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the Financial Conduct Authority, which oversees the access to cash regime.

Pursuant to the Answer of 3 March 2025 to Question 33105 on Banking Hubs, whether she has the power to change the assessment criteria used by LINK to establish new banking hubs.

Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of remote banking. While branch closures are commercial decisions for banks, the Financial Conduct Authority (FCA) guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place. Where alternative services have been recommended, a branch cannot close until any recommended services are in place. The Financial Services and Markets Act 2023 granted the FCA the responsibility and powers to seek to ensure the reasonable provision of cash withdrawal and deposit facilities. Under the FCA’s regime, LINK, the operator of the UK’s ATM network, is responsible for undertaking access to cash assessments. When a cash service such as a bank branch closes, or if LINK receives a request directly from a community, LINK assesses a community’s access to cash needs and can recommend a new service, such as a banking hub. The Government has no powers to intervene in decisions to open new banking hubs, and the criteria for access to cash assessments is a matter for LINK, the financial services sector and the FCA. The FCA is required by law to keep its access to cash rules under review and is monitoring the impact of these rules on an ongoing basis to ensure they deliver the right outcomes for businesses and consumers.

Whether she has made an assessment of the adequacy of the assessment (a) process and (b) criteria for the establishment of banking hubs.

The Government understands the importance of face-to-face banking to communities, high streets, and rural areas across the UK, and is committed to championing sufficient access for all as a priority. The Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 200 hubs have been announced so far, and over 100 are already open. The locations of banking hubs are independently determined by LINK, the industry coordinating body responsible for making access to cash assessments. When a cash service such as a bank branch closes, or if LINK receives a request directly from a community, LINK assesses a community’s access to cash needs. LINK will recommend appropriate solutions where it considers that a community requires additional cash services. Some of the criteria that LINK considers are whether there is a bank branch remaining, population size, number of shops on the high street, distance to the nearest bank branch, public transport links, and vulnerability of the population.Based on this independent assessment and recommendation, Cash Access UK will provide a suitable shared solution, such as a deposit service, or a banking hub, for that community.

What steps her Department plans to take to support the establishment of Banking Hubs in town centres that no longer have any bank branches.

The Government understands the importance of face-to-face banking to communities and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the U...

If she will take steps to reduce the tax burden on working people.

The Government wants to keep taxes as low as possible on working people and will do so by delivering sustainable growth through economic stability and sound public finances. The upcoming Budget on 30 October will set out reforms to fix the foundations, so...

What steps her Department is taking to help preserve access to banking on high streets.

The Government recognises the importance of banking to communities and high streets and has committed to work closely with banks to roll out 350 banking hubs over the next five years. These will provide individuals and businesses up and down the country with critical cash and banking services. So far, 147 banking hubs have been recommended and Cash Access UK, the industry body responsible for banking hub deployment, expects 100 banking hubs to be open before the end of the year. While not the same as a bank branch, alternative options to access everyday banking services can also include telephone banking, through digital means such as mobile or online banking, and via one of the UK’s 11,500 Post Office branches.