1. What assessment has the First Minister make of the effect of bank closures on businesses in Wales? OAQ(5)0322(FM)[W]

Whilst decisions on branch closures are commercial matters for the banks, we recognise the negative impact that closures can have on local businesses. We welcome the recent review by Professor Griggs, which made recommendations to improve the way in which banks engage with communities.

Thank you for that response. We know, of course, that the Federation of Small Businesses report in October demonstrated the clear impact that it has on small businesses—for example, businesses having to close earlier and losing business because they have to travel further to bank their money. The British Bankers Association has also clearly demonstrated that loans to companies in areas where banks have closed fall substantially. You referred to the report in your response, so can you expand upon what you as a Government are going to do, and what discussions have you hade with the banks in order to look at alternative models of retaining services in some of these towns that have lost their branches?

One of the things we’ve done, of course, is to ensure that funding is available to post offices, particularly in rural areas, so that they can ensure that the services currently provided by banks are maintained by them—for example, paying in cheques, withdrawing money, and so on. But, what I would tell the banks is that it’s very important to ensure that, where businesses do use the banks at the moment in order to cash their takings, those resources should be available in future to allow them to do that, be that in a post office or through some alternative method that is convenient for those businesses.

In the past few months, two major banks have closed branches in Delyn—HSBC in Flint and Barclays in Holywell, with NatWest now being the latest to announce they’re closing a branch in Holywell as well. Whilst I recognise the steps these banks have taken to ensure that personal banking customers can access their accounts within the post office, in many areas, the future of these post offices are far from certain as well. On Friday last week, I was discussing this in Sweeney Ted’s Barbers in Holywell—and I can confirm people have only walked out with their hair cut—with regard to the problems created by this other bank closure and the specific impact perhaps on rural communities and those businesses that have to travel further with substantial amounts of money. So, I’m sure, you, First Minister, share my concern, and other Members, of the impact of these branch closures, and I’d like to ask what Welsh Government advice and support is available for small businesses in town centres that are impacted by such closures.

Well, it comes down to ensuring that the post office is able to deliver the kind of banking services that businesses would expect. The nature of banking has changed over the years. Fewer and fewer people visit banks. What is absolutely crucial is that people have the facility to withdraw cash, that people have the facility to deposit cheques and cash into a financial institution and also, of course, that small businesses are able to deposit cash at the end of the day when their businesses close. It’s hugely important that where banks leave communities, the post office is able to do that, therefore providing a continuity of service. And that’s why, of course, we’ve provided financial support to post offices over the years, to make sure that communities do have their post offices that can deliver a wide range of services.

First Minister, you may be aware that Lloyds Bank is proposing to close three branches in my constituency. Presiding Officer, I should declare an interest in this question as a former employee of Lloyds Bank. Not only are these closures in my constituency totally out of keeping with the numbers closing at a UK level, but the branches are crucial to many people who live in and around those communities and their closure would have a destructive impact. I accept that this is a commercial matter for the bank, but, following on from previous questions, what specific support can the Welsh Government provide to these communities, and what can the Welsh Government do to mitigate the negative impacts that these branch closures will have on communities?

I understand that Newport, Fishguard and Milford Haven have plans to close branches. What’s vitally important is that those services that are available now through the banks are available in an alternative method, and that means working through the post office to ensure that those services are available there. That will ensure that the services are available for local people and will ensure more work and business for the post offices, helping to make the post officer sustainable. However, what we don’t want to see happening—and this is something that we have ensured has not happened in rural areas in the past—is post offices closing and services wiped out completely from communities. That is something that we don’t wish to see and it’s why we’ve been supporting them financially.