The Bishop of Newcastle led a debate on the impact of bank closures on rural communities on 13th February 2025, raising issues of financial exclusion:
The Lord Bishop of Newcastle: To ask His Majesty’s Government what assessment they have made of the number of bank closures in the past decade and the impact on people in rural communities.
My Lords, I thank all noble Lords who are taking part in this short debate and look forward to listening to each of the contributions that they will bring. While this debate has its focus on diverse rural communities, I know that the issue before us is not solely rural.
Last month, Lloyds Banking Group announced that it will be close 136 bank branches across the country. The Tyne valley in Northumberland will see another three branches close their doors—two in Hexham and one in Prudhoe—meaning that customers in Hexham will need to travel over 15 miles to Consett to visit their nearest Lloyds branch.
Lloyds’ announcement comes after a decade of decline in the number of high street banks. Figures from Which? show that 6,266 bank branches have closed across the UK over the past 10 years, representing 63% of branches open at the start of 2015. If bank branches continue closing at such a rate, we face living in a society where those unable to bank digitally are financially excluded.
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