England (Commonwealth Union) _As a result of mass branch closures that have deprived local communities of in-person services, Labour intends to demand a vote on ensuring in-person banking across the nation. The amendment proposed by the party to the financial services and markets bill would grant City regulators the authority to guarantee that communities have regular access to “essential” in-person services, such as opening new accounts, applying for loans, making and receiving payments, and setting up standing orders.
That may entail safeguarding bank branches that would otherwise be in danger of shutting down or developing hubs with shared services in underserved neighborhoods. The amendment, which was put out by shadow City minister Tulip Siddiq, goes above and beyond what the government has suggested to ensure access to cash and to assist those who are most in need, such as the elderly or those who are less wealthy and have difficulty using digital banking.
In response to worries that the law may force customers to pay fees for withdrawals from ATMs or businesses, Labour is also advocating for free-cash access. A representative for the Treasury stated that the government was moving forward with access to cash legislation but would not directly address Labour’s plan for in-person banking. FCA, the Financial Conduct Authority, declined to respond.
The most recent modification to the comprehensive measure, which primarily aims to update City legislation that was initially inherited from the EU, is one proposed by Siddiq. If approved, it would also give regulators the supplementary goal of enhancing UK companies’ competitiveness. In addition, the government is debating whether to introduce a different amendment that would controversially provide Treasury officials broad authority to overturn judgments made by UK watchdogs including the Bank of England and FCA. The independence and prestige of the nation’s financial regulators may be in jeopardy, according to several top officials.
