Government warns local communities at risk of losing access to banking

The Government has voiced concern that local communities are at risk of losing access to banking services without specialised hubs.

Speaking as she inaugurated the UK’s 100th banking hub in Lancashire, the Chancellor Rachel Reeves said “Without these banking hubs, towns are going to be banking deserts.”

The Government plans to establish 350 hubs by 2029, with five launched this week and another 80 expected next year. However, consumer groups argue that the rollout of alternative banking services is too slow to meet public needs.

Sam Richardson, Deputy Editor of Which? Money, said “Thousands of branches have closed their doors in recent years, often leaving those reliant on their services in the lurch or having to travel long distances to access them.“

“Banking hubs are likely to be the future of banking, replacing shuttered branches, and while it’s encouraging to see this milestone passed their rollout remains too slow for consumers to feel their benefit.

“It’s vital that the Government holds its commitment to opening 350 hubs in the next few years – and it should be prepared to revise that figure upwards if necessary.”