Stuart Anderson MP has launched a survey which calls for banking hubs to be set up in South Shropshire. He has said it would help residents access free to use cash and everyday banking services. It follows the announcement by Lloyds Banking Group that it intends to close its branches in both Ludlow and Bridgnorth in May 2025.
The closure notice issued by Lloyds in January signposts the Hereford branch as an alternative for Ludlow customers - although it is almost 23 miles away. It also signposts Bridgnorth residents to the Tettenhall branch in Wolverhampton, which is some 11.55 miles away.
In a letter to clients, Lloyds confirmed they will update their website with details of a 'Community Banker' they will set up. They add the service will be reviewed to ensure it "can continue to be available for as long as needed". Stuart has called for more details regarding this service to be published as soon as possible.
In the meantime, Stuart tabled a formal written question in Parliament calling on Treasury Ministers to support the delivery of banking hubs in rural areas. In a response published on 6th February, the Economic Secretary to the Treasury said:
"The Government understands the importance of face-to-face banking to communities, high streets and rural areas across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with banks to roll out 350 banking hubs, which will provide local residents and businesses up and down the country with critical cash and banking services. Over 200 banking hubs have been recommended so far, and over 100 banking hubs are already open."
Banking hubs are a voluntary service which were developed by the financial services sector to protect access to cash under the Financial Services Act 2023. The UK banking sector has committed to delivering 350 banking hubs by the end of the Parliament.
The rollout of banking hubs is overseen by Cash Access UK, a not-for-profit company set up and funded by industry for the purpose of delivering shared access to cash solutions. Their specific location is determined independently by LINK, the operator of the UK’s largest ATM network.
LINK considers certain criteria, such as whether another bank branch remains nearby, the local population, the number of cash-accepting businesses and the financial vulnerability of the community.
With the results of his survey, Stuart is hoping to put together a submission to present the case for banking hubs in South Shropshire. He added that this would provide much-needed access to banking services alongside other solutions that support access to cash.
Stuart Anderson MP said:
"Since the announcement of two Lloyds bank closures in South Shropshire, many constituents have contacted me to explain the impact that it will have on them. Customers in Ludlow have been signposted to the Hereford branch although it is almost 23 miles away, while Bridgnorth residents to the Tettenhall branch in Wolverhampton, which is some 11.55 miles away. As the second largest inland county in England, I believe that Shropshire deserves better access to in person banking services than this. So, I have called on Lloyds' Bank CEO to urgently share more details about planned continuity of services. I have also launched my survey to gather support for a banking hub, which would help residents to access free to use cash and other in-person banking services."
Ministers said alternative options to access everyday banking services in the meantime can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office.
The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.
