3. Will the Minister make a statement on budget allocations to the housing and local government portfolio in relation to the post office network? OAQ53319

We recognise the importance of local post offices in serving our communities. While responsibility for the post office network is non-devolved, we continue to make representations to the UK Government regarding our concerns over the closure of post offices.

In the last month, we've lost three bank branches in the Rhondda. Barclays announced that they're closing their branches in Tonypandy and Ferndale, and more recently, Santander have announced that they are going to close their branch in Tonypandy as well. This now means that there is not a single bank branch in the Rhondda Fach. Now, it's clear to me that in the wake of this callous closure programme from the corporate banks, the post office network is going to take on an extra level of importance. In the past, we had the post office diversification fund. That was a key component of the Plaid Cymru-Labour One Wales Government that awarded grants to post offices to make those businesses more sustainable. If we could protect and strengthen the post office network, it could ensure that people and communities do not become completely cut off from financial services. So, in the light of this, will you consider making funds available to reactivate such a fund?

Thank you for raising that. I'm afraid that in the current climate we just don't have the funds available to us to be undertaking work that is rightly the work of the UK Government. The UK Government does have a £2 billion post office network transformation programme to modernise those post offices. It's very much in the way that we did previously through the diversification fund. Welsh post offices are able to apply to that fund, and I'd certainly encourage them to do so.

I was disappointed with the beginning of that answer, I have to say, Trefnydd. With so many bank closures, we are relying on post offices for access to cash now. Can you clarify whether the post office charges banks for the service that people can use there, or, possibly, is the charge the other way round? Does the post office charge the bank or does the bank charge the post office? And is there any difference in those charges depending on where those post offices are located? As we've heard recently, a differential is now being considered for the Link ATM network with more deprived and rural areas incurring smaller charges between the two organisations than, perhaps, city centres. But that could be a disincentive or an incentive for post offices, depending where they are. Obviously, I accept that Welsh Government has limited powers in this field, but in deciding which post offices you could support through your financial inclusion policies, how do you horizon scan for new threats to access to cash in deciding which post offices you could support?

Thank you very much for raising that. Of course, bank regulation and the post office network are both responsibilities of the UK Government and we've been very clear time and time again that the UK Government does need to take a more coherent and strategic approach to community banking. We believe that all banks, when they leave a community, do have a responsibility to the customers who have often been giving their loyalty to that bank for decades, in many cases.

We know that, actually, six banks in total, that we're aware of, are due to close later this year, including the one previously mentioned in Tonypandy, which is one of the reasons that we're interested in exploring the idea of a community bank for Wales. So, we're in some very early-stage discussions with a number of stakeholders who are keen to explore with us the feasibility of establishing that community bank in Wales. That work will be led by partners who will prepare a full market assessment and business plan with the intention to submitting it then to the Bank of England as an application later on this year. Banking professionals working within the Development Bank of Wales will support the work, providing advice and guidance where appropriate and ensuring that the creation of a community bank does integrate with the existing financial institutions, including, for example, the Development Bank for Wales and the credit unions. The credit unions particularly are a really important part of that financial inclusion that the Member was talking about.