MP says latest assessment of Horncastle’s banking needs is not enough

Victoria Atkins, Member of Parliament for Louth & Horncastle says a plan to only provide an “assisted cash service” in response to the closure of Horncastle’s Lloyds bank branch on August 10 is not enough.

The MP met recently with LINK, which the organisation responsible for the cash access network in the UK, to discuss their assessment of the banking needs of Horncastle, following the announcement of the planned closure of the town’s last remaining bank.

Ms Atkins commented: “Local banking is vital for Horncastle and the dozens of surrounding villages where constituents rely on our town as a service hub.

“Following the announcement of the upcoming closure of Lloyd’s branch, LINK’s recent assessment suggested an ‘assisted cash service’ for the town and having met with them, I do not believe that goes far enough.

"I have written to LINK to ask them to look again and reconsider Horncastle’s need for a banking hub.

“Our rural communities are not suburbs. Using urban metrics to measure rural needs is wrong. We need a full Banking Hub to protect our local businesses, our vulnerable residents, and the thousands of people in our rural catchment area. Horncastle must not become a banking desert.”

Banking Hubs are set up by Cash Access UK on behalf of the main big banks and generally operated by local postmasters for people to do their day to day cash banking and see bank advisers on more complex matters on a rota basis.

In her letter to LINK Ms Atkins argues that Horncastle is a vital service centre for the surrounding villages and assessing the town in isolation overlooked that wider population. She added that the assessment does not recognise the high proportion of elderly and digitally-excluded residents in the area who need more complex financial support than a simple cash deposit service.

She claimed: "The cost of a bus ticket from Horncastle is £3 each way. This represents a significant financial barrier to reasonable access under FCA guidelines.”

In their assessment LINK stated: “We have defined the local area by mapping the local high street and understanding who is likely to rely on it for cash services, and which businesses would be affected by any gap in

cash services.”

The local area was limited to the population of Horncastle. LINK said they checked if the local area was urban or rural and what cash access services are still available within a three-mile radius of where at least 95 per cent of the area's residents live.

They stated: “We believe there is some deficiency in cash access services in the community, and we are recommending a new assisted cash service.”

This service would permanently provide a cash deposit service for personal current accounts that is provided free of charge, a cash deposit service for businesses, a free cash withdrawal service for personal current accounts and a cash withdrawal service for businesses.