More than half of London’s bank branches have shut since 2015
More than half of London’s bank branches have shut their doors since 2015, analysis has revealed.
The capital has seen 745 branches – or 58 per cent – close down in the past eight years, data from Which.co.uk revealed, with just 539 still operating, amid the ongoing shift to online banking services.
It comes as Labour pledged to work faster to roll out so-called banking hubs which would allow customers from major banks and building societies to access services in person, as part of the party’s aim to revitalise Britain’s high streets.
Government has given the Financial Conduct Authority (FCA) new powers under the Financial Services & Markets Act 2023 to ensure people have reasonable access to cash.
While by September this year, just seven banking hubs had been opened across the UK, run by the Post Office, with 83 more being approved.
But shadow City minister, Tulip Siddiq, argued that the “government’s current voluntary approach simply isn’t moving fast enough”.
She said: “Despite recent legislation being passed to protect access to cash, not enough action has been taken to ensure that essential face-to-face banking services are being protected in our town centres.
Labour says it would bring in new FCA powers to stop people being in “banking deserts” and guarantee face-to-face banking services, with areas currently in need first in the queue.
“We will work with banks and the FCA to ensure shared banking hubs are rolled-out across the country at pace and at scale to get British high-streets thriving again,” Siddiq added.
Analysis also revealed almost half of the UK’s bank branches have shut since 2015, leaving just 3,208 bank branches in England.
Shadow chancellor Rachel Reeves said the plan would “bring banking services back to communities who have seen them disappear” and shadow business secretary Jonathan Reynolds vowed: “We will make sure every community has access to high street banking.”
City minister Bim Afolami commented: “Another day, another example of Labour taking the easy way out and just saying what they think people want to hear – without saying how they would pay for it.
“Their sums don’t add up: Keir Starmer is claiming Labour can afford to launch new banking hubs, scrap business rates which would cost tens of billions of pounds, borrow £28bn more every year, cut people’s taxes and somehow keep debt falling. This is simply not possible – they are not being straight.”
A UK Finance spokesperson said: “The banking industry is committed to ensuring there is continued access to cash for those who need it, when they need it.
“Significant ongoing investment is being made to deliver this commitment, working closely with both government and the Financial Conduct Authority, including setting up shared banking hubs, free ATMs and cashback without purchase.
“By the end of 2023, there will be 30 shared banking hubs open across the country, with a further 60 scheduled to open in 2024. Research from the FCA has found that the vast majority of people have free access to cash locally and we will ensure this level of service is maintained.”