Chancellor Rachel Reeves launches 100th banking hub in Darwen to protect access to cash

The Chancellor of the Exchequer Rachel Reeves at Darwen Market during a visit to Darwen, Lancashire. Credit: PA Images

The UK's 100th banking hub has been launched in a renewed effort to protect communities's access to cash as the Chancellor warned towns were at risk of becoming "banking deserts".

Rachel Reeves opened the latest hub in Darwen, Lancashire, where she admitted she was “not immune” to the cost pressures facing small businesses following the budget.

A banking hub is a shared space on the high street that can be used by customers of different banks.

It offers a counter service operated by the Post Office and a community banker service with different banks working on rotation each day.

Rachel Reeves spoke to the media about the Office for National Statistics GDP stats for October during a visit to the Darwen. Credit: PA Images

Ms Reeves said the Government was “on track” to roll out 350 hubs by 2029, with five opened this week and another 80 in the pipeline for next year.

She said: “That is a ramping-up of the plans that we inherited.

“It’s a manifesto commitment and we’re absolutely determined to deliver against it so that more people, more towns, more communities have access to those banking facilities.”

Asked whether the Government would be prepared to increase its target to keep up with the pace of bank branch closures, Ms Reeves said the current plans were a “massive ramp-up of the plans that we inherited” from the previous government.

The Chancellor of the Exchequer Rachel Reeves speaks to a florist at Darwen Market during a visit to Darwen, Lancashire. Credit: PA Images

Some consumer groups have said the rollout of alternative banking services remains too slow for consumers to feel the benefit, with thousands of branches closing in recent years.

More than three in every five bank branches across the UK have closed their doors permanently since 2015, according to research from Which?.

Ms Reeves said Nationwide Building Society’s pledge to remain in every town and city where a branch currently exists, until at least 2028, was “great”.

“But the truth is, we’ve all seen in our areas that banks are closing, and without these banking hubs towns are going to be banking deserts and that’s why these banking hubs are so important,” she added.

Sam Richardson, deputy editor of Which? Money, said: “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.”

The Chancellor insisted that she “brought an end to instability” caused by the Tory government, despite facing backlash on the decision to increase the rate of employer national insurance next year in the autumn Budget.

“I’m not immune to the challenges that businesses face, but when I became Chancellor there was a £22 billion black hole in the public finances and I acted to bring stability back to the economy.

“In the last few years our economy has been plagued by instability, with double-digit inflation, interest rates and mortgage rates through the roof.

“I brought an end to that instability through the decisions that we’ve taken.”

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