The Treasury has issued a statement regarding the future of banking services across the UK, with significant changes affecting customers of major banks such as Barclays, Halifax, Lloyds, NatWest, and Santander. Conservative MP Wendy Morton submitted a written question in Parliament about banking provision, asking whether ministers had evaluated the criteria used by LINK to determine when banking hubs should be established.
Bank Branch Closures Continue
Many bank branches are scheduled to close between July and September 2026, including outlets of Lloyds, NatWest, and Halifax. The MP for Aldridge-Brownhills also inquired whether an independent review of access to banking services would examine the appropriateness of LINK's criteria for "rural, coastal and market town communities."
The review, currently in progress, will examine which in-person banking services are vital and the damage caused by reduced services in local communities. Recommendations will be submitted to the Government in October 2026.
LINK's Assessment Criteria
Economic Secretary to the Treasury, Rachel Blake, responded on behalf of the Government. She outlined that LINK considers factors such as "the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops" when assessing cash access needs. LINK bases its assessment on a "catchment area" of three miles in rural locations and one mile in urban areas.
Ms Morton noted that the FCA is legally required to keep its rules under review, including those relating to 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. LINK's access to cash assessment process can be found on its website."
No Current Legal Protections
Despite these safeguards, the Treasury minister acknowledged that there is "currently no existing legislative or regulatory protections for the provision of access to in-person banking services." This is why 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.
