Banking regulation and access to banking services are reserved matters controlled by the UK Government and UK financial regulators, meaning decisions surrounding bank closures, banking hubs and access to cash are not devolved to the Scottish Parliament. As rural communities across the Highlands and beyond continue to lose face-to-face banking provision, debates such as this are therefore critically important in ensuring that the concerns of communities like ours are heard directly at Westminster.

Garve and District Community Council, previously wrote to the Lloyds Banking Group ahead of the closure of the last remaining bank in Dingwall in March 2026 to highlight how important face-to-face banking services remain for rural communities such as ours.
https://gdcc.scot/news/bank-of-scotland-dingwall-branch-closure-reply-3-dec-2025
https://gdcc.scot/news/bank-of-scotland-closure-of-the-dingwall-branch-27-sep-2025

Maree Todd MSP also wrote to the Lloyds Bank Group and has spoken out on the issue many times.

Our concerns were echoed in a House of Commons debate on banking hubs and banking access held yesterday, 20 May 2026. MPs from across Scotland and the rest of the UK warned of the growing impact bank closures are having on communities, businesses and vulnerable residents.

The debate was organised and led by Graham Leadbitter MP for Moray West, Nairn and Strathspey, who spoke extensively about the challenges facing rural areas and the inadequacies of the current banking hub criteria used by Link and regulators. These criteria just do not work for remote and rural communities like ours.

Opening the debate, Mr Leadbitter highlighted the dramatic reduction in bank branches across his constituency, which has fallen from 22 branches in 2015 to just six today across a geographical area that can take two and a half hours to drive across. He warned that communities in the Highlands and rural Scotland are being disproportionately affected by closures, with towns including Grantown-on-Spey, Aviemore, Lossiemouth and Nairn all facing serious difficulties accessing banking services.

Importantly, Mr Leadbitter stressed that the issue goes far beyond access to cash alone. He outlined how local businesses rely on in-person banking services for deposits, change collections, fraud support, account management and general business advice. He also highlighted the difficulties faced by elderly and vulnerable residents who are unable or unwilling to rely solely on digital banking.

A significant number of MPs from all political parties and from constituencies across the UK took part in the debate, demonstrating the widespread concern over the ongoing loss of bank branches in both rural and urban areas.

Several MPs criticised the current Link assessment system used to determine eligibility for banking hubs, arguing that the criteria fail to properly account for geography, public transport limitations, tourism pressures, ageing populations and the cumulative impact of repeated branch closures.

During the debate, Caithness, Sutherland and Easter Ross MP Jamie Stone made a very, very brief intervention. He said:

“I know that this is an issue that the Hon. Member cares about passionately. I am sure that like me, he has had issues with people, particularly elderly people, who fear that they have been scammed. It is all very well saying, ‘Get online and we’ll see if we can sort this out,’ but there is nothing like a face-to-face meeting and somebody from the Bank of Scotland, the Clydesdale or the Royal Bank of Scotland saying, ‘No, you’re okay,’ or, ‘This is what we’ll do.’ With all due respect, that reassurance is not there online. That is why I believe that face-to-face advice is hugely important.”

Responding on behalf of the Government, Economic Secretary to the Treasury Rachel Blake acknowledged the strength of feeling expressed by MPs from across the House and recognised the importance of banking services for vulnerable residents, businesses and communities in both urban and rural areas.

Rachel Blake confirmed that the Government has launched an independent review into access to banking services, which is due to report in October 2026. She also acknowledged concerns raised during the debate regarding delays, unsuitable assessment criteria and difficulties securing permanent banking hub locations.

During her response, Rachel Blake highlighted the Government’s recently introduced Financial Services and Markets Bill and encouraged evidence from communities across the country to be submitted to the independent review. She stated that banks and building societies are expected to put appropriate alternatives in place before branches close, adding that where firms fall short, the Financial Conduct Authority has powers to ask for closures to be paused.

The Minister also responded directly to concerns raised by MPs from across the UK regarding the operation of Link, the current banking hub assessment process and the challenges faced by both rural and urban communities in securing banking provision. Constituencies from Scotland, Wales, England and Northern Ireland all raised examples of communities losing their final remaining bank branch, difficulties accessing cash services, and the inadequacy of existing criteria based around distance and population thresholds.

MPs repeatedly stressed that access to banking services remains essential not only for cash withdrawals, but also for financial inclusion, fraud prevention, mortgage and savings advice, support for elderly residents and the viability of small local businesses.

The debate demonstrated the growing national concern surrounding the continued closure of local bank branches and the urgent need for more flexible, community-focused banking hub provision.

Thanks to Graham Leadbitter for all the work he has done, along side Maree Todd's efforts in Scotland, to get this matter debated in Westminster and for their unwavering campaigning on this issue.

Read the full debate from the Hansard

 

House of Commons Debate on Banking Hubs