Labour promise hundreds of new banking hubs

The Labour party have announced they will open 350 banking hubs if they win next month’s general election.

The party will roll out their plan over the next five years to help address the issue of branch closures.

Banking hubs allow staff from different banks to share the same space and make routine banking transactions. Hubs have private areas with staff representing each bank helping customers with more complex requests.  

More than 6,000 bank branches have closed down since 2015.

Cash Access UK, an organisation helping to protect cash access, recently announced the launch of the 50th banking hub. The non-profit group say they aim to open 100 banking hubs by the end of the year.

On top of this, ATM network Link has recommended the creation of 132 hubs across communities with specific criteria relating to things like the number of shops, deprivation level and transport links.  

Link chief executive John Howells said hubs are “proving a very popular way of providing access to cash and basic banking for consumers and businesses who need to use a high street branch”.

Hubs operate using a rotation system to give different banks the chance to use the spaces on different days.

It takes about a year to open a hub after it’s been recommended. Temporary hubs can be set up in areas where it’s difficult to find a suitable building.

The Labour party say they will update the requirements for the creation of banking hubs. They also plan to explore how hubs can help people with different financial situations through digital training and debt advice.

Labour plan to give new powers to the Financial Conduct Authority and strengthen regulation to help Link find the right locations for banking hubs.

Shadow chancellor Rachel Reeves said:

“Labour’s plan for growth means bringing banking back to high streets, with hundreds of new banking hubs that can support local communities and their businesses.”

Has your local bank closed?

Last year, more than 600 bank branches shut down across the UK.

If you’ve been hit by this, there are other places you can go to withdraw cash, deposit cheques, manage your payments and get face-to-face advice from a banking professional.

Read more in our guide on what to do if your local bank has closed down.