With banks across the UK shutting down branches, the Labour Party says it will give new powers to regulators to guarantee people have access to cash and oversee the creation of hundreds of high street banking hubs if it wins the net general election.
Data from consumer watchdog Which? shows that the number of bank branches in the UK has nearly halved since 2015, with 600 sites disappearing just this year. Yesterday, Lloyds announced more closures slated for 2024.
In response, lenders, along with Cash Access UK and the Post Office, have begun opening shared banking hubs.
There are currently 24 such hubs but Labour says it will oversee the creation of at least another 350, enabling customers of various banks to withdraw money, deposit cash and cheques, and pay bills.
In addition, the party plans extra controls to allow the Financial Conduct Authority to step in and stop people being left in so-called “banking deserts”.
In August, the government moved to give the FCA the power to seek to ensure reasonable provision of cash deposit and withdrawal services for personal and business current accounts in the UK or part of the UK.
But, Labour says its plans will ensure “essential face-to-face banking services” are maintained.
Shadow chancellor Rachel Reeves says: “Labour’s plan will bring banking services back to communities who have seen them disappear over recent years, meaning more people across the country will be able to access the services they need closer to home.
“Labour will tackle ghost high streets and ensure that every community has access to high street banking services.”
Economic Secretary to the Treasury Bim Afolami says: “Another day, another example of Labour taking the easy way out and just saying what they think people want to hear — without saying how they would pay for it.”
