Highland Lib Dems call for ‘Access to Banks’ provision to prevent local branch closures

Highland Lib Dems call for ‘Access to Banks’ provision to prevent local branch closures

The Financial Conduct Authority (FCA) is being urged to reconsider and broaden its current ‘Access to Cash’ policy to include an ‘Access to Banks’ provision following the recent mass closure of local bank branches across the UK.

Closure have been particularly widespread in the Far North of Scotland, where the closure of the last Bank of Scotland branch in Golspie has left the entire county of Sutherland without a single bank. More closures have now been proposed in the Ross-shire towns of Tain, Gairloch and Dingwall.

The FCA's Access to Cash Policy, published in 2024, introduced new rules for banks and building societies designated by the Treasury to ensure reasonable access to cash withdrawal and deposit services for consumers. However, this did not include the provision for these businesses to uphold their face-to-face banking resources - which is the vital service that Highlanders have repeatedly expressed their need for.

Consequently, Jamie Stone MP and David Green, the Scottish Liberal Democrat far north candidate, have expressed their belief that widening the scope of the FCA’s mission to an ‘Access to Banks’ standard would better align with their objectives of consumer protection and fair access.

Mr Stone and Mr Green have also written to Lloyds Banking Group, as well as the Chancellor of the Exchequer, expressing his concern regarding the recent closures and the banking group’s subsequent neglect of their duty to their customers.

Commenting, Mr Stone said:

“While the focus on preserving physical cash availability is valuable, the evolving financial landscape, including the recent mass closure of local bank branches, requires a wider framework to ensure individuals and businesses maintain guaranteed access to essential banking services and not just cash withdrawals.

“The presence of bank staff, advice services, and in-person problem resolution remains fundamental to maintaining financial confidence and ensures every community can connect with essential banking services, whether face to face, through shared hubs, or through guaranteed local support.

“In my constituency in the Highlands, there is no denying that these recent closures have unfairly disadvantaged my more elderly constituents - who don’t all have the means of using online banking and cannot simply drive to the next town in search of another bank branch.

“We’ve done the hard work and looked for a solution, now I need the FCA, the Chancellor and Lloyds Banking Group to sit up and take action on behalf of people all across the UK.”

David Green, the Liberal Democrat candidate for Caithness, Sutherland and Ross, added:

"Preserving access to cash is vital, but it’s not enough.

“In-person banking remains vital for many, particularly older residents, small businesses, and those who are less confident with digital banking.

"But the proposed bank closures in the Highlands fails to recognise this. Asking people in Gairloch, for example, to travel multiple hour round trips to the next nearest bank is no alternative at all.

"Thats why we are calling for a wider guarantee that people - especially in rural areas - can still access face-to-face banking, advice, and support."

ENDS.