I have published this video this morning. In it, I argue that towns and large villages across the UK are being blighted by bank and post office closures. By making a simple change to banking regulation, Labour could require that every place with a population of more than 10,000 in the UK must have a banking hub – from which every bank and a post office could meet the needs of the local community - and at no cost to the government, at all.
The audio version of this video is here:
The transcript is:
Labour could change the UK.
It could require that our banks make sure they have a presence in every town in this country where there are more than 10,000 people.
Not necessarily every bank in every town. Let's not be unrealistic about this, because we don't need every bank in every town of more than 10,000 people in this country.
But we do need banks. People have to be able to access their banks to be able to talk to people, to get advice, and in some cases, to be able to access their money in a way that they can't because they're unable to use cashpoint machines or unable to process cheque payments through the post, or whatever it might be. Just to make a loan application as well, with which they might need help.
Now, we know that banking hubs work. We know that banks can cooperate to create these hubs. We know that one person in a banking branch can help people over multiple banks with such things, because let's be honest, the person who needs assistance from Barclays is very similar to the person who needs assistance from NatWest, and the systems from Barclays are very similar to the systems from NatWest, or Lloyds, or HSBC, or Santander, or whoever it might be.
But, we need to have that presence because banking cannot be remote from society and we can demand it. Why? Because all these banks operate under the terms of a license from the Bank of England. And the condition of that license should be that all the banks should cooperate to make sure that these banking hubs are available in every community of any size in this country.
It would transform the way that people can access bank accounts. It would make it possible for people who currently have difficulties with banking to go to talk to someone.
And there's something else that could happen at the same time in this banking hub. It could also be the Post Office, because there are far too few of them in this country now. And people need access to Post Offices as well.
So put together the two, and have a banking and post office hub. And in every town, and even large village in this country, you would have a centre where people could go to get financial advice and undertake the transactions that they need to make their lives possible.
Labour could do that. It would cost them literally nothing. But it would transform life, particularly in rural areas.
Come on Labour, let's do it.
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It’s 8-10 miles to my nearest bank, so I dread being given a cheque as it’s a long journey to pay it in. We are fortunate to have a very good post office in our village shop, but as I bank with the Nationwide and am reluctant to change as I happily do most things online I can’t use it.
Our nearest town of 10,000 with many elderly pensioners who want face to face banking has no bank or banking hub and just one part time post office. This is not fair on people who want a real person to talk to, or businesses who need somewhere to deposit their cash.
Banks should not be allowed to pull totally out of towns like this and the government should insist there is a minimum service for a population level and a maximum distance you should have to travel for basic services.
We use Nationwide, but would have to drive over 50 miles to Edinburgh to find a branch.
It’s 7 miles to a post office.
My husband just got a refund on car tax (we changed our car)…and the government sent him a cheque, rather than refunding into the account it was paid from.
There is no joined up thinking at all.
I like a Richard’s suggestions.
Thanks
“De-banking” of many, quite substantial communities is a problem.
Regulating existing banks to meet certain service requirements is one route – and maybe the only route in the short term. However the best solution would be to set up a State owned/run bank operating through the Post Office branch network.
It could set the benchmark for service that banks would have to compete with. Link it up to an enhanced NS&I and and investment bank and it would transform the financial landscape.
Giro bank was set up in 1968 because banks were not that keen on banking ordinary folk…. it was technologically advanced, offered interest bearing current accounts and was the first to introduce telephone banking. Where it led the clearing banks followed. Let’s bring it back.
But that would have a cost
I am going for costs imposed on there first
This would be a precursor to a Girobank, though
I absolutely agree about the need for a post office/banking hub in every town, but I’m less sure about the way it would be financed.
I bank with Starling, which has never had a physical presence in any town. Other banks work on the same model.The only time I have needed face to face services is to pay in my pot of saved coins every Christmas, and I can do that via our local, excellent post office. Would the banks like Starling have to contribute to the cost of the hub?
And why can’t all post offices be like ours? Situated in a Spar store the post office is open when the store is open – 06:00 to 21:45, although it does not open until 07:00 on a Sunday.
I think a levy on all customer based banks should pay for this……
What about adding in Central and Local Government Services eg HMRC, Passports, DVLA, Council Tax etc?
Possibly ‘by appointment’
On the list
Dear Rachel,
It appears that you have been convinced that the interest paid ( expected to £35bn + this year) by the UK to banks on their holdings should be continued to be paid.
Remember that the UK only introduced this in 2006 and is now one of the very few countries in the world that still pays.
Perhaps you could have made it a condition that the banks actually provide proper branches in each community otherwise the “subsidy goes”?
Or better still scrap the payments.
Oh, YES. I totally support this idea.
Fakenham, the small market town in which I work, used to have a number of bank branches. Over the years one after another has been shut done and now there are two left, a Nationwide which has no cashpoint, and a Lloyd’s.
Ely is fast heading that way. Barclays is the latest to go and I think Lloyds is next.
Here in Brechin when I first moved here in 2012 there were five bank branches: RBS, ,HBos (or whatever it was called then), Clydesdale, Santander, and Lloyds/TSB.
In response to them ALL closing one by one we now have a banking hub.
Mostly I use the Post office, but it isn’t a bank.
Plenty of choice in hairdressers and ‘beauty’ salons though.
That’s the issue I want to address
You still have a football club
You still have a football club.
True and I have been promising myself since about 2012 that I will go and watch them play. Even if I only do it the once. 🙂
I’m currently missing England vs The Netherlands in the bar downstairs (I’m on holiday). I quite like the SMELL of paint drying even if there isn’t much to see.
You talk like Brits aren’t capable of traveling further that 10 miles from home in their whole lives.
Having moved from U.K. to North America one of the differences is travel distance, in a lot of the U.K. 10miles is a long way and can take time to cover and you’ll pass through a couple of other places.
Why should they have to travel many miles for such things and pollute the planet to do so?
The biggest losers in this are our elderly, many of whom don’t do online banking and may not be able to drive. We are talking about a loss of service to the more vulnerable in our community. I live in rural Devon and many of the over 80s prefer cash and don’t do online banking. I’ve online banked for years and my only inconvenience is paying in cheques.
@ Hazel Murphy
Elderly?
Who are you calling old ?
In my opinion/experience it’s not age that is the determinant it’s income.
Yes. Maybe too many ‘elderly’ folk can’t afford the taxi they need (?)
Where I live I am pretty well served for banking. I only use public transport and have a senior bus pass. Whether or not it is possible to travel 10 miles depends on how good the public transport is. I often go to central London, a journey of about 22 miles.
But there are villages only a few miles from where I live that only have a bus service one day a week. So if I lived there it would make banking much more difficult. Most of these villages have a Post Office, usually in a Spar shop. So a decent Girobank would be an ideal solution.
Would setting up a Girobank be prohibitively expensive?
I think it a question to ask
Distance is time when it comes down to it. Six miles in and around central London at morning rush hour time would take me from Brechin most of the way to Perth. Look it up on google maps. It’s a long way to commute. And thus expensive.
Sorry what was your point? I think I might have missed it.