Bank customers should 'vote with their feet'

Barclays is proposing cutting some rural banks

A government minister has suggested customers of Barclays should "vote with their feet" if the bank goes ahead with plans to close some rural branches.

Junior environment minister Chris Mullin urged bank bosses to think again about plans to shut some of its outlets.

During the Westminster Hall debate on Barclays' plans to close branches, Mr Mullin expressed his concern and suggested customers should consider alternative forms of banking.

Alan Beith: "Widespread concern"

Liberal Democrat Alan Beith, opening the debate, said the subject had sparked anxiety across the country.

The MP for Berwick-upon-Tweed described how Barclays was conducting a three month trial in 270 Cornwall post offices to see how they could deliver its services.

Mr Beith told MPs he had "pleaded" with the bank's chairman to defer the closures until the pilot scheme was over and until there had been discussions with local communities affected.

"With such widespread concern I think the bank really ought to realise how much damage it is doing both to itself and to rural communities by rushing ahead with closures without the kind of consultation I have talked about.

Chris Mullin: "Disappointment"

"With a 30% profit increase to £2.5 billion they can hardly plead poverty.

"They really have got some room for manoeuvre and it should be used to help their own customers in rural communities."

Mr Mullin said: "I share your disappointment with the attitude of Barclays towards their rural customers."

He described how other banks had already made arrangements to offer free banking in some post offices, which "may well" be the future of rural financial services.

To back this up the government was giving the Post Office £500m computerisation funds so it could provide a wider range of services.

"The government's view is that Barclays should certainly delay these closures until the results of the experiment," said the minister.

"We do consider that access to financial services is a vital element in achieving rural development and eliminating social exclusion.

"I hope that Barclays are prepared to reconsider their proposals until such time as realistic alternatives are available.

"But if they're not, customers must vote with their feet."