Calls for action on 'banking deserts' as half of Northumberland banks close within a decade

Labour’s Ian Lavery said even the largest towns in the county were becoming “banking deserts”, with half of all branches lost since 2015.

In a speech in the House of Commons on Thursday, Mr Lavery said the closures left vulnerable residents without access to essential services. The Blyth and Ashington MP said the Financial Conduct Authority (FCA) needed more powers to protect access for face-to-face banking.

Mr Lavery said: “The elderly, disabled and digitally excluded are being left behind.

“Banks are deserting communities they once profited from – with no accountability, no real consultation and no alternative services in place.

“The FCA needs real teeth. We must amend the 2023 Financial Services and Markets Act to protect access to face-to-face banking – not just access to cash.”

The Government has pledged to create 350 new banking hubs by the end of the current Parliament. However, Mr Lavery claimed this was “nowhere near enough” – and slammed major banks for closing branches amid huge profits.

He added: “There are 650 constituencies across the UK. My area alone needs hubs in five communities. Multiply that nationwide and you’ll see we need at least ten times more than are currently on offer.

“These are the same banks we bailed out during the financial crash and they’re now walking away from the very taxpayers who saved them.”

Bedlington’s last remaining bank closed in 2024. Elsewhere, Prudhoe’s final branch closed earlier this month, which has led to residents finding issues accessing cash.

Coun Gordon Stewart, the Conservative councillor for Prudhoe South said: “Due to the closure of Barclays bank and Lloyds bank on Prudhoe Front Street, we have lost two out of the four free to use 24-hour cash point machines.

“In a town that is growing and keen to support local businesses, this is concerning. I am in contact with cash point providers to try to convince them we need an additional machine in the town and to help ensure the ones we have are maintained in good working order.”