Economic Secretary to the Treasury Rachel Blake has issued a statement addressing the future of banking services across the UK, following a written question from Conservative MP Wendy Morton. The update affects customers of major banks including Barclays, Lloyds, NatWest and Santander.
Banking Hub Criteria Under Scrutiny
Ms Morton asked whether ministers had evaluated the criteria used by LINK, the interbank network that connects cash machines, to determine where banking hubs should be established. When a bank branch closes, LINK assesses in-person cash provision in that area to decide if a hub is needed.
Several bank branches are scheduled to close between July and September 2026, including branches of Lloyds, NatWest and Halifax. The MP for Aldridge-Brownhills also inquired if the upcoming independent review of access to banking services would examine whether these criteria are suitable for "rural, coastal and market town communities".
Independent Review Timeline
The review is currently underway and will examine which in-person banking services are essential and what detriment is caused by the decline in local services. Recommendations will be presented to the Government in October 2026. Ms Morton also asked whether communities previously denied a banking hub could seek reassessment after the review.
In her response, Ms Blake outlined that LINK considers multiple factors when assessing cash access needs, including "the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops". The organisation also examines demographics and whether residents can reach nearby facilities, using a catchment area of three miles in rural locations and one mile in urban areas.
Legal Framework and FCA Rules
Ms Morton noted that the Financial Conduct Authority (FCA) is legally required to keep its rules under review, including those on access to cash. She stated: "Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment."
The FCA mandates that banks and building societies assess cash access provision in two scenarios: when services in an area are altered (e.g., a branch or Post Office closing or changing hours), or when a "cash access request" is submitted by a local resident or business via the LINK website.
No Current Legal Protections
Despite these provisions, Ms Blake confirmed there is "currently no existing legislative or regulatory protections for the provision of access to in-person banking services", which is why the independent review was commissioned. She added: "The chair will provide a report and recommendations to the Government upon its conclusion, at which point the Government will consider any future actions."
The Financial Services and Markets Bill includes a power to allow the Government to take action to protect access to banking services if necessary. Ms Blake said: "This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the review supports intervention."
