Bank closures a devastating blow as Liberal Democrats demand rethink

Scottish Liberal Democrat politicians from across the Highlands have come together to urge the Bank of Scotland to think again following the bank’s decision to close branches in Dingwall, Gairloch, Nairn, and Tain next year.

In a letter to the Bank of Scotland, the politicians warned of the “responsibility to support and sustain local communities” and called for meaningful engagement with “local communities and the Scottish Government” and to reconsider these closures.

According to the consumer group Which?, more than 6,400 sites across the UK have closed since 2015. That equates to more than 60% of the UK’s banking network, at a rate of around 53 closures every month.

The Federation of Small Businesses (FSB) has also warned of the negative impacts of bank closures on small businesses, particularly the loss of face-to-face interaction and difficulties managing cash flow, which can hinder operations and growth.

At their spring conference in Inverness this year, the Scottish Liberal Democrats agreed proposals to protect communities from bank closures by exempting the “last bank in town” from business rates and by encouraging banks to pool resources to maintain shared banking hubs.

Banking hubs are owned by Cash Access UK, a not-for-profit company owned and funded by nine major banking providers, and are operated by the Post Office. They provide shared facilities where customers of all major banks can withdraw and deposit cash, pay bills, and access basic services.

The motion backed by party members also called on the UK Government to instruct the high street banks that if they do not adequately fund the Banking Hub network, then it will be paid for by a levy on bank profits.

Neil Alexander, Scottish Liberal Democrat candidate for Inverness and Nairn, said:

"This closure will be a huge blow to those who rely on in-person banking services. For Nairn, it means local people will lose their last bank in town.

“This would mean a loss of a vital service to the community of Nairn, which would impact vulnerable people the hardest. Bank of Scotland needs to rethink about this closure to think about the human cost of this decision.”

David Green, Scottish Liberal Democrat candidate for Caithness, Sutherland and Ross, said:

"Closing these branches fails to recognise the unique needs of our rural communities. Access to cash and in-person banking remains vital for many, particularly older residents, small businesses, and those who are less confident with digital banking. The Bank of Scotland must think again.”

Andrew Baxter, Scottish Liberal Democrat candidate for Skye, Lochaber and Badenoch, said:

“As a former subpostmaster, I know many local shopkeepers, cafés, and traders still rely heavily on cash, losing yet another branch risks making it harder to trade. It is time banks matched their rhetoric about serving customers with real investment in hubs and services that people can actually use.

“As your MSP I will push for practical solutions like hubs so that people are not deprived of essential financial services. People deserve better and Scottish Liberal Democrats are committed to delivering a fair solution."

ENDS