Lib Dems: Scrap business rates for last bank in town and accelerate banking hubs

The Scottish Liberal Democrats are calling on the Scottish Government to help protect communities from bank closures by exempting the “last bank in town” from business rates and for the acceleration of Banking Hubs to ensure the services they provide are accessible before any community suffers a bank closure.

At their Spring Conference in Inverness [4/5 April 2025], the party debated proposals to protect banking services put forward by Far North MP Jamie Stone and David Green, the party’s candidate for the Scottish Parliament seat of Caithness, Sutherland and Ross.

The motion comes as closures in Wick and Kyle in 2025 will see the loss of the last bank in town. The recent closure in Golspie means the county of Sutherland is without a bank, a trend seen across the country. Raising concerns about access to face-to-face financial services for local people.

According to the consumer group Which?, more than 6,000 sites across the UK have closed since 2015. That equates to more than 60% of the UK’s banking network, at a rate of around 53 closures every month.

The Federation of Small Businesses (FSB) has also warned of the negative impacts of bank closures on small businesses, particularly the loss of face-to-face interaction and difficulties managing cash flow, which can hinder operations and growth.

The party’s proposals would protect communities from bank closures by exempting the “last bank in town” from business rates and by encouraging banks to pool resources to maintain shared banking hubs rather than abandon rural and remote areas entirely.

The motion backed by party members also calls on the UK Government to help protect rural communities by instructing the high street banks that if they do not adequately fund the Banking Hub network, then it will be paid for by a levy on bank profits.

David Green, the Scottish Liberal Democrat candidate for Caithness, Sutherland & Ross, said:

“Everyone should have a right to access safe and secure banking services, no matter where they live.

“We know closing bank branches has a disproportionate impact on rural communities, increasing the threat of isolation amongst older generations, people with disabilities and those with poor internet access.

“To protect rural services, both of Scotland’s governments need to work together. Banking Hubs are proven to work, but they must be accelerated to ensure the services they provide are accessible before any community suffers a bank closure. Likewise exempting the last bank in town from business rates would help to fend off the threat of further closures in communities where access to cash and banking services are under threat.”