The Treasury has issued a statement about the future of banking services
The Treasury has issued an update regarding the future of banking across the UK. The announcement concerns significant changes affecting customers with all leading UK banks, including Barclays, Halifax, Lloyds, NatWest and Santander.
Conservative MP Wendy Morton submitted a written question in Parliament about banking provision across the UK. She asked whether ministers had evaluated the criteria used by LINK to determine when banking hubs ought to be set up.
LINK is an interbank network that links thousands of UK cash machines, enabling customers from various banks to use any cash machine within the system. When a bank branch shuts down, the organisation evaluates the in-person cash provision in that locality, to establish whether a banking hub is required.
Bank branch closures coming soon
Many bank branches are scheduled to close between July and September 2026, including outlets of Lloyds, NatWest and Halifax. The MP for Aldridge-Brownhills in the Midlands also enquired whether a forthcoming independent review of access to banking services would examine whether these criteria are appropriate for “rural, coastal and market town communities”.
This investigation is currently in progress and will examine subjects such as which in-person banking services are vital for customers to access and what damage is caused by the reduction in services within local communities. Recommendations will be submitted to the Government in October 2026 on the back of the report.
Ms Morton also asked the Government whether communities that had previously been turned down for a banking hub would be able to “seek reassessment” once the review has been published. Economic Secretary to the Treasury, Rachel Blake, responded on behalf of the Government.
Treasury minister statement
She outlined that LINK considers several factors when assessing the cash access requirements of a local area. These include “the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops”.
The organisation also examines the demographics of residents in the area, and whether people are able to travel to nearby facilities. She noted that LINK bases its assessment on a “catchment area” of three miles in rural locations and one mile in urban areas.
Ms Morton pointed out that there are certain provisions under UK law that have a bearing on the question of bank branch provision. She said: “The FCA [Financial Conduct Authority] is legally required to keep its rules under review, including those relating to access to cash.
“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. LINK’s access to cash assessment process can be found on its website.”
The FCA has regulations requiring banks and building societies to assess cash access provision in an area under two circumstances. The first is when changes are made to services locally, such as a branch or Post Office shutting down or changing its opening hours.
The second circumstance is when a “cash access request” is lodged, which is when a local resident or business demands a review of services in their locality. You can lodge this request on the LINK website.
No current legal protections
Despite these safeguards being in place, the Treasury minister acknowledged in her response that there is “currently no existing legislative or regulatory protections for the provision of access to in-person banking services”. She explained this is the reason the independent review has been commissioned.
Regarding the review, Ms Blake said: “The chair will provide a report and recommendations to the Government upon its conclusion, at which point the Government will consider any future actions.
“Alongside the review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the review supports intervention.”
