The UK Government should review the impact of bank branch closures on communities, MPs have said, amid warnings of “significant financial exclusion”.
MPs approved a motion expressing concern over the “precipitous decline” of banking facilities over the past 40 years and stressing the impact on vulnerable people.
They called on the government to investigate the issue and deliver changes to ensure communities have “appropriate” access to banking facilities.
Leading a Commons debate on the issue, Labour MP Ian Lavery called for a change in legislation to ensure the impact on services are considered when a bank closure is announced.
He said: “We’re now in government, and it’s time to take action, we’ll need to curb the power of the big banks once and for all, we need to start a review into the impact on communities of losing bank branches.
“We need to change the legislation and ensure community factors like face-to-face services are considered when a closure is announced; we need to be bold.”
MPs supported the non-binding motion tabled by Lavery, which noted face-to-face banking is a “vital service” and a reduction of branches “risks significant financial exclusion”.
It added the Commons “calls on the government to instigate a review into the impact on communities of bank branch loss and a change to the regulations to ensure communities have appropriate access to banking facilities”.
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