UK Prime Minister Theresa May has announced an early general election to be held on 8 June. If the election is won by the current opposition, the Labour Party, it could the life raft that bank branches need
John McDonnell, the shadow chancellor, has set out plans to halt the ‘epidemic’ of branch closures. This includes only permitting branches to be shut after a local consultation and with the permission of the Financial Conduct Authority (FCA).
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McDonnell said: “High street bank closures have become an epidemic in the last few years, blighting our town centres, hurting particularly elderly and more vulnerable customers, and local small businesses whilst making healthy profits for themselves. It’s time our banks recognise instead that they are a utility providing an essential public service.”
More than one in four UK bank branches (26.3%) have been shuttered in the past five years. With new rounds of closures announced by HSBC, TSB and Clydesdale/Yorkshire, total UK branch numbers are set to fall to below 8,000 from 11,000 in 2011.
According to research from RBI, Barclays, HSBC and RBS/NatWest have all seen the number of staff employed drop in recent years, attributed in some part to branch closures.
However, a shift depends on many factors. Firstly, Labour would need to put the strategy in their election manifesto. Following that, they would need to win the election. Furthermore, the motion would need to be passed and it doesn’t seem likely to be a move in which banks would be in favour.
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By GlobalDataThere may be light at the end of the tunnel for the UK bank branch, but it is a very long tunnel.
