Damian Hinds released the following statement today:
The body responsible for overseeing access-to-cash rules has confirmed that Petersfield will be without business banking facilities for the foreseeable future. In a response to local MP Damian Hinds, the Financial Conduct Authority (FCA) said it does not currently have the powers to consider wider issues - such as the impact on local businesses - when a bank branch is earmarked for closure.
The decision by Lloyds to close its Petersfield branch in January 2026 triggered a cash-access assessment carried out by LINK, the community banking service. LINK concluded that Petersfield did not qualify for a new banking hub because Santander, Nationwide and a Post Office remain in the town. This is despite LINK’s own assessment noting that the nearest full-service bank for both business and personal customers is almost 10 miles away, around 50 minutes by public transport.
Commenting, Damian Hinds said: “It’s obviously very disappointing for a town as substantial and vibrant as Petersfield to be left without proper all-working-week business banking facilities. Since Lloyds announced its closure, I’ve been in touch with Link and the FCA to explore whether the decision can be revisited. Unfortunately, the FCA’s powers focus narrowly on protecting access to cash, rather than assessing the broader economic impact of commercial decisions made by banks.”
He continued: “While it’s positive that we still have a building society and a bank, albeit one operating reduced hours, and the Post Office, these options do not necessarily meet the full needs of all local businesses. Small and medium-sized firms, including independent traders, are the backbone of our market towns. Their ability to trade, access financial services and operate efficiently is vital to our community and to national economic growth.”
In its letter, the FCA confirmed it will undertake and publish a formal evaluation of the impact of the new cash access rules once they have been in operation for a sufficient period. This review, the FCA said, will include an assessment of the effectiveness of the current cash-access process, an issue raised directly in Damian’s letter.
Damian added: “I will now be writing to the Treasury to ask them to consider the limitations of the FCA’s current powers and the consequences this has for local businesses. At a time when High Streets are already facing pressures, from reduced business rates relief to increased Employer NICs plus whatever this week’s Budget has in store, we should be doing everything we can to ensure businesses can access in-person banking services.”
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Notes to editors:
- Nationwide recently confirmed its commitment to stay in East Hampshire (Alton and Petersfield) until 2030.
- Link’s full decision on Lloyds in Petersfield can be found here: LINK / Our Assessments
