Labour vows to ‘guarantee face-to-face banking’ as hundreds of towns see last branch close
Labour has vowed to improve in-person banking services in communities across the country
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The Labour Party has pledged to ensure face-to-face banking services for hundreds of towns hit by bank branch closures.
The opposition party today outlined its five-point plan to improve the UK’s high streets if it wins the next General Election.
Among the issues highlighted in manifesto included tackling shoplifting, replacing business rates, stamping out late payments and addressing the wave of bank branch closures sweeping communities.
In its announcement, Labour said: “Rishi Sunak’s recession has hammered small business and consumers alike, with the soaring cost of living, eye-watering mortgage and rent payments contributing to businesses closing and shops boarded up.
“And since 2022 alone, an additional 385 towns have seen their last bank branch close, or announce that they will be closing imminently.
“This has left local people and businesses without any options to bank locally.”
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Bank branch closures are continuing throughout April GETTY High street banks and building societies, including Halifax, NatWest and Barclays, have closed branches this year with more to shut down in the coming months.
Some banks, such as Santander, have held off closing more sites in 2024 with Nationwide Building Society pledging to continue banking services in towns where it has a branch in until 2028.
Earlier this year, consumer champions Which? warned the “alarming rate” of closures could leave residents in certain areas without sufficient access to cash.
To address concerns from the public and politicians over branches shutting down, banking hubs have been set up in communities affected by closures.
LINK, the country’s cash and ATM network, has proposed 117 banking hubs with currently 37 banking hubs currently up and running in the UK.
This shared banking method has now been officially supported by Labour ahead of the next General Election as Sir Keir Starmer makes inroads in addressing the public’s cash concerns.
The party’s pledge stated: “Thriving high streets need banking services for local businesses and customers.
“Labour will roll out banking hubs to guarantee face-to-face banking in every community boosting local high streets and shops. The cost of opening and operating the hubs will be met collectively by the banks.”
Shadow Chancellor Rachel Reeves said Labour’s economic plan will “breathe new life” to Britain’s high streets.
She explained: “We’ll create the conditions to get retailers thriving again by replacing business rates, opening hundreds of banking hubs across the country and stamping out late payments to get them paid on time.”
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Rachel Reeves has hailed Labour's new five-point pledge
GB NEWSHowever, Treasury Minister Bim Afolami hit back that Labour “don’t have a plan” to pay for this five-point plan.
Mr Afolami said: “Only Rishi Sunak and the Conservatives have a plan which is working.
"Cutting the taxes of hardworking families, supporting businesses with the biggest ever tax cut for small business and halving inflation.
“We should stick to that plan and not go back to square one with Labour.”