Highland MP Jamie Stone held urgent discussions with Lucy Rigby, the UK’s Economic Secretary to the Treasury, regarding the future of banking services in rural communities. This meeting took place following recent announcements of bank closures in areas like Dingwall, which have severely impacted access to essential banking services for residents.
Mr. Stone, who represents Caithness, Sutherland and Easter Ross, expressed significant concerns that the closures have forced some constituents to undertake round trips of up to 100 miles to access in-person banking. While he acknowledged the existence of alternatives such as banking hubs and post office services, he emphasized that these options fall short for individuals who struggle with digital banking or require direct assistance, particularly victims of fraud.
The MP highlighted the difficulties faced by small business owners who must wait in line at post offices to deposit large sums of cash. He argued that the current arrangements do not adequately meet their needs and called for practical improvements to ensure that rural communities have reliable access to basic financial services.
After the meeting, Mr. Stone stated, “Access to cash and in-person banking is a necessity, not a luxury. Too many of my constituents, particularly older residents and small businesses, are being left behind.” He also reiterated his commitment to holding the government accountable on this pressing issue.
In a previous communication, Mr. Stone urged the Prime Minister to amend the Financial Services and Markets Act 2023 to include an ‘access to banks’ provision. This proposal aims to safeguard the most vulnerable populations and ensure that banks fulfill their obligations to provide face-to-face banking services.
Moreover, he reached out to the Financial Conduct Authority (FCA) to reassess and broaden its current ‘access to cash’ policy. In response, the FCA indicated that the amended Financial Services and Markets Act grants them new powers to ensure reasonable provision of cash services, effective from September 2024. These regulations require banks and building societies designated by the Treasury to identify and address significant gaps in cash provision.
Despite these advancements, the Parliament decided not to expand the FCA’s powers to encompass broader banking services, leaving some gaps in coverage. Mr. Stone raised this limitation during his meeting with Minister Rigby.
The Minister acknowledged the challenges surrounding rural banking access and confirmed that the Financial Services and Markets Act is under review. She expressed a desire to see improvements to existing banking hubs, including extended opening hours, before considering any legislative changes.
Mr. Stone welcomed the Minister’s recognition that the current assessment system for banking hub locations does not always reflect the realities of rural transportation. In response, he agreed to submit casework supporting his proposals to enhance banking access in rural areas.
As these discussions unfold, the focus remains on ensuring that rural communities are not left isolated from essential financial services, a critical issue for many residents in the Highlands.
