MP intervenes as more banks face closure

Hexham Labour MP Joe Morris took the seat from Conservative Guy Opperman in July

A newly elected MP has used his first parliamentary debate to call for action to help stop rural communities becoming "banking deserts".

Labour's Joe Morris MP, who took the Hexham seat from Conservative Guy Opperman in July, said closures left countryside residents feeling "frozen out".

During his adjournment debate, which closed proceedings on Monday, Mr Morris said it was "simply unfair to expect our constituents to put up with a second-class service just because they live rurally".

Research published last year by the consumer group Which? showed almost 6,000 bank branches had closed in the last decade, and more closures have been announced.

During the debate, Mr Morris said: "These bank branch closures do not just mean an inconvenience to my constituents.

"They present a toxic cocktail that both damages quality of life and holds back the growth of our rural economy."

He also raised concerns about elderly residents who struggled to use digital banking services.

Barclays previously said it would replace the Berwick branch with a cashless hub

Economic Secretary to the Treasury Tulip Siddiq MP said the government recognised "part of the population remain digitally excluded" and was "committed to improving connectivity and digital access for all".

She also said new Financial Conduct Authority rules would compel banks to keep open branches scheduled for closure until alternative provisions, like cash machines, were installed.

In January, Labour announced plans to increase alternative banking hubs to 350 in the next five years, but some have complained hubs do not offer the same service as bank branches.

Mr Morris told the BBC he supported the new government's policy, but wanted to make sure the issue remained high on the agenda.

"It does cause genuine distress to people, so it's very important for me to raise the issue," he said.

"There are parts of the Hexham constituency where a lot of passing trade is tourism with customers using cash.

"Those businesses need easy bank access."

In Haltwhistle, Mr Morris's constituents have been advised to travel either to Carlisle or Hexham to access banking facilities, while residents in Alnwick will soon lose their remaining bank services.

The branch in Bedlington, along with another in Amble, was earmarked for closure

In Blyth, two neighbouring bank branches will close within four months of each other.

During the debate the town’s MP Ian Lavery said he was concerned it was one of the areas becoming a banking desert.

"We must take immediate action to look after these vulnerable people," he said.

Lloyds Group, which operates both the Lloyds and Halifax bank branches in Blyth, said in both cases at least 75% of customers were already using online and mobile banking services.

"Mobile banking is more popular than ever, with over 19 million customers choosing our app to manage their money," a spokesperson said.

"Alongside our app, customers can bank online, over the phone, at a Post Office or by speaking to one of our Community Bankers."