Fair Deal for Our High Streets: Banks Must Pay Their Way.

Banks save £2 billion a year from abandoning our high streets and town centres. 

Our post offices pick up the slack, but they are not funded by the banks anywhere near enough to be able to maintain their presence. 

This must change.A Fair Deal for Our High Streets: Banks Must Pay Their Way

​The backbone of our local communities—our post offices—are being stretched to breaking point, forced to pick up the pieces as major banks abandon high streets and town centres across the country. This isn't just an inconvenience; it's a profound social and economic injustice that Liberal Democrats are determined to fix.

​The simple fact is that banks are systematically shedding their physical presence, enjoying annual savings estimated in the billions. Yet, they are not bearing the responsibility for the essential services their customers still need. Who is left to fill this gap? Our invaluable Post Office network.

 The £2 Billion Question

​For years, post offices have quietly and competently stepped into the void left by bank branch closures, handling vital transactions that keep local commerce and community life running. They are providing the last remaining face-to-face financial services for the elderly, for small businesses, and for those who rely on cash.

​Speaking out against this deeply unfair burden, Liberal Democrat MP Tim Farron, highlighted the staggering imbalance:

​“Banks save £2 billion a year from abandoning our high streets and town centres.

​Our post offices pick up the slack, but they are not funded by the banks anywhere near enough to be able to maintain their presence.

​This must change.”

​Farron's words perfectly encapsulate the problem. This £2 billion saving for the banking industry is effectively a cost downloaded onto our communities and the Post Office itself, threatening the very existence of a network that is often the last financial service in town.

​The Cost of Closure

​Every time a bank closes a branch, it undermines the footfall and viability of the high street. When post offices, already operating on tight margins, are then underfunded for taking on bank-level transactions, they too become vulnerable. A Post Office closure is a hammer blow to an area—especially in rural or deprived communities—cutting off access to cash and essential services.

​Liberal Democrats believe in a fair economy and strong local communities. It is unacceptable that multi-billion-pound financial institutions are privatising their profits while socialising their costs onto a public service.

​What the Liberal Democrats Demand

​We are calling for urgent, mandatory action to ensure the banks contribute fairly to the Post Office network. Specifically, the government must mandate a significant, increased contribution from the major banking groups to reflect the true value of the essential services the Post Office provides on their behalf.

​It is time for the banks to pay their way. This is not a request; it is a necessity to safeguard financial inclusion, support our high streets, and ensure the Post Office network can thrive, not just survive. The £2 billion they are saving should, in part, be reinvested into the communities they have abandoned.

​The big banks have benefited from our communities for decades. Now, as they abandon them, they must be forced to contribute fairly to the infrastructure that keeps our high streets breathing.

Every time a bank closes a branch, it undermines the viability of the high street. A Post Office closure is a hammer blow, cutting off access to cash and essential services, especially in rural or deprived communities.

Liberal Democrats believe in a fair economy and strong local communities. It is unacceptable that multi-billion-pound financial institutions are privatising their profits while socialising their costs onto a public service.

​Only by securing fair funding for our post offices can we guarantee that local people and businesses continue to have access to the essential financial services they deserve.