Over the past four decades there has been a precipitous decline in the number of high street banks. Data from the British Banking Association showed the branches in 1986 was more than 21,000 whilst at the beginning of 2025 there were fewer than 5,000 remaining. Whilst this has been driven by a change in consumers’ banking habits the loss of a high streets bank is a bitter blow to many people.
The loss of high street banking is an issue that affects communities of all types. In last weeks debate colleagues from across the house raised their own experiences and the impact that had been felt on communities from the Great British Countryside to our capital city.
In my constituency, the pretty coastal village of Newbiggin by the sea, was left without a bank in 1999. Bedlington, Northumberland’s 4th largest town will be left without a bank in May this year and in recent years bank branches in the two largest towns in my Constituency Blyth and Ashington have also closed, a further closure in Blyth was announced only last week.
Whilst banking executives might see high street branches as an unnecessary drain on resources, many customers see them as much more. Many people see their bank as a public service, something there when they need it. The move to internet banking has undoubtedly had an impact on how people manage their finance but for vulnerable groups the loss of a high street bank risks financial exclusion. For small businesses there is a further drain on resource, forced to travel further to bank.
For many of us who can bank online, the loss may hit less hard. Until of course we need the security of a face-to-face meeting. I have met many people in my time as a Member of Parliament who have been subject to elaborate scams, either online or over the phone, who want to see someone from their bank in person to sort it out.
Banking Hubs are an innovative solution to the changing habits of consumers that offer a dedicated counter for cash services and in-person help with more complicated transactions such as mortgages, loans, pensions and more on a dedicated day of the week. Their roll out however is too slow and the criteria for awarding them too narrow.
Bedlington in my constituency is a prime example of the failure of the system. Bedlington is a proud community with a rich history. When fleeing North from William the conquerors army the body of St Cuthbert was said to have been rested at the church which now bears his name. The town and its surroundings were once an exclave of County Durham then developed into an industrial centre with it’s Iron Works and multiple coal mines.
The loss of heavy industry has left a legacy like many other post-industrial communities though many might miss this if travelling down it’s picturesque high street. The decision of TSB to close the last remaining bank on Bedlington Front Street came as a hammer blow and the subsequent decision not to recommend a banking hub a huge shock, littered with systemic failures.
The announcement of closure did not automatically trigger a review into the town’s access to cash or banking facilities due to a technical issue. This was subsequently triggered by my office and then fast tracked by Link. On conducting a site visit the assessor was gushing in his praise for Bedlington’s high street and though not set in stone recommending a banking hub seemed inevitable.
However, when the review was concluded it found the closed branch was 0.1 km too close to a bank branch in Cramlington that was accessible by bus. The decision was then upheld when challenged, despite citing the individual issues faced by the town and its residents. Northumberland’s fourth largest town will be left without a bank in May.
This is an issue facing communities across the country and the half hour debate in Parliament last week was far too short to go through both the impact this will have on residents and the need to strengthen legislation to ensure communities are not left financially isolated. It is an issue that deserves careful thought and more Parliamentary time. I will be pursuing all options to make sure it gets it.
Bank closures are leaving too many communities financially isolated, this has to stop
