Cleethorpes MP, Martin Vickers, held a debate to draw attention to the recent high street bank closures in northern Lincolnshire.
Speaking in the Westminster Hall debate, Martin specifically mentioned the recent announcements by HSBC and NatWest that they would be closing branches in Barton-upon-Humber. In Martin's speech, he highlighted how high street branches are crucial for both businesses and personal customers alike.
Martin's full speech is below:
"I beg to move,
That this House has considered bank closures in Northern Lincolnshire.
It is, as always, a pleasure to serve under your chairmanship, Mr Davies. I sought this debate because our high street banks are reducing the service that they give to my constituency and the neighbouring constituency of Gainsborough. My hon. Friend the Member for Gainsborough (Sir Edward Leigh) has asked for his name to be associated with my comments. Unfortunately, a diary clash prevented his being here.
It might be helpful if I give a brief outline of Barton-upon-Humber, which is the northernmost part of my constituency. That market town is being affected by two bank closures. Both HSBC and NatWest have announced that they are closing their local branch; the NatWest one will close on 20 August and the HSBC one in early September. Barton-upon-Humber is a long-established trading town, situated on the southern bank of the River Humber. It has held some significance from as long ago as Saxon times. It has developed into what I think it is fair to say is a typical market town. The banks have announced the closures at a time when the population is increasing and there is a real boost to the local economy, wrought in part by the reductions made by the coalition Government in the Humber bridge tolls, which have made journeys between the northern bank and the Barton area much more accessible.
When we talk of a high street, we have a vision of a cluster of small shops—butchers, bakers, newsagents and so on—but they are always supplemented by the local solicitor’s office, perhaps an insurance broker and, of course, our high street banks. They come together and provide the essential ingredients of a thriving local economy, not just in our provincial towns but—perhaps even more so—in our market towns.
Barton-upon-Humber is one such place. Three years ago, it suffered a major setback when the Kimberly-Clark factory closed. That resulted in more than 500 job losses but, thankfully, Wren Kitchens took over the factory and it is now a thriving commercial enterprise, employing almost as many people as when Kimberly-Clark had it and with the prospect of yet more jobs in the pipeline. As I mentioned, the reduction in the Humber bridge tolls has been a real boost to the local economy, but the offshore renewables sector, based around the ports of Immingham and Killingholme, has made Barton very much an expanding town. More residents equal more potential customers, whatever the business—or so people would think. That will not be so at our high street banks, NatWest and HSBC, which, as I said, have recently announced the closure of their branches.
Of course, we all recognise that banking has changed, particularly for the personal customer, and in that respect most of us are to varying degrees guilty. We want the bank or the bookshop there when it suits us, but for the rest of the time we are tempted by online banking, Amazon or whatever. However, that is no help to our local butcher, newsagent or other trader who wants to offload his takings for the day.
Let me focus on NatWest, as it was the first of the two banks to announce the closure of its branch. Like most high street banks, it occupies a major building in the marketplace in Barton. It has been there since 1913. The announcement came as a major disappointment to the community: private customers and, as I have mentioned, small businesses. Older residents in particular feel it as a blow. Once again, personal contact is being taken away from a commercial transaction. Local people, of course, are concerned that this might be the start of a trend. I am pleased to say that I met officials from Barclays earlier this week and they have given me an assurance that they are not planning any closures—for the moment; that is the big concern of local people.
I mentioned the neighbouring constituency of Gainsborough, where two towns, Caistor and Market Rasen, are affected. For Caistor, it is a particular blow because the NatWest is the last bank in town.
There are more ways than ever to bank. NatWest has provided me with a host of statistics. It says that branch transactions have fallen by 36% in the past five years and mobile transactions have increased by 300%. It states:
“Only 9% of our transactions were undertaken in our branches in 2014, compared to 25% in 2010”.
It goes on to state:
“We know the value of the High Street branch, we have the second largest branch network in the UK, and it will remain the cornerstone of our service to customers.”
How will it remain the cornerstone if it is closed?
Branches are important because, as I mentioned, they provide an opportunity for customers to interact with staff on what may be big life decisions, such as taking out a mortgage or starting a business. Both NatWest and HSBC are very keen to tell me that they are making alternative arrangements with the Post Office. That, of course, is in line with the protocol agreed between the British Bankers Association and the Government earlier this year, but local post offices do not constitute a vast network. As anyone who has queued up in the post office with loads of money from their takings will know—I used to work in Market Rasen and can tell my hon. Friend the Minister that even to go and buy a stamp was a half-hour job—the reality is that post offices are not an ideal alternative.
The British Bankers Association has provided me with a host of information about how banks go about assessing closures. As the Barclays representatives told me yesterday and, indeed, as the HSBC representative told me, this is customer-led—customer-led meaning, of course, that people are moving online or to mobile transactions. I hope that the Minister will be able to give some reassurance that the agreed protocol will be firmed up a little. As I am sure she will appreciate, people are rather cynical about consultation processes. They tend to think that the bank decides on closure and consults on how to go about the closure, not on whether the closure should take place. I hope that the review of the protocol, which is scheduled for a year after it comes into force, will result in its having a few more teeth than has been the case up to now.
The British Bankers Association protocol does go into a fair amount of detail, whereas the Government’s website is a bit thin on the ground when it comes to what should actually be provided. The previous Minister, who is now my hon. Friend the Minister of State at the Department of Energy and Climate Change, said at the time of the protocol’s introduction:
“I’ve received a lot of correspondence from consumers and businesses who are worried about bank closures and the trend in banking services moving online, and I think it is essential that banks continue to take into account the impact of their decisions on their customers.
I therefore welcome the agreement announced today that banks will work more closely with their customers and local communities to minimise the impact of bank closures.”
In other words, it is an acceptance that bank closures will take place. My constituents look to me, and I look to the Government, to be on their side and the side of customers—not on the side of the banks, which are well positioned to take account of themselves.
If we look further at the details from the British Bankers Association, they go on to outline community engagement. Although it happened eventually, NatWest was seemingly somewhat reluctant to meet Barton Town Council. It has now done so, and has also met North Lincolnshire Council. The meeting was to discuss the impact of the closure on the community and customers, and to look at alternative provision. It was not—I repeat not—to discuss whether alternative arrangements could be made, such as mobile banking or reduced opening hours. I look to the Minister to give some reassurance that when the review takes place, she will seek to strengthen the protocol on behalf of my constituents.
Hon. Members across the political spectrum continually speak about the high street and how important it is to maintain a vibrant local economy and support our local shops. If we are to expand our market towns, however, shops need the services of our local banks. Banks, I am afraid, take a rather high-handed attitude. It is easy for us all to slip into the much-favoured habit of criticising bankers, and I accept that we are talking about high street bankers rather than those who have even less public appeal. The reality, however, is that customers, such as the local newsagent, who are looking for services from their bank will easily notice the large profits and the rather generous—to put it kindly—payments to senior directors. If just a little of that were to trickle down into the local branch network, perhaps we could sustain our market towns and small shops to a much greater extent than we have done in the past.
I go back to the Government’s website, which is, as I say, a bit basic when it comes to outlining the protocol. The website states:
“Today’s ground-breaking agreement will make sure customers still have banking services close at hand if a branch closes. Communities will be given fair notice of any closure and clarity about the alternative places and ways to bank. This includes the Post Office, which is an ideal shared service for customers who prefer to use counter services. The agreement will also make sure there is the right support to help customers use internet or mobile banking.”
I have to say that my constituents in Barton have not seen many examples of support for customers when it comes to greater involvement of online banking.
I conclude by appealing once again to the Government to be on the side not only of my constituents in Barton and those in the neighbouring constituency, in Caistor and Market Rasen, but of customers throughout the country who deserve and need a proper high street commercial banking network if high streets and the business community are to survive."