Recommendations & Conclusions
8 items
1
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
We recognise that the Government does not want to intervene in the detail of commercial decisions. However, we are concerned that a lack of data on cash usage in Scotland means Ministers have not had a clear picture of the implications of bank branch and ATM closures on communities in …
Read more
We recognise that the Government does not want to intervene in the detail of commercial decisions. However, we are concerned that a lack of data on cash usage in Scotland means Ministers have not had a clear picture of the implications of bank branch and ATM closures on communities in Scotland. We welcome the Minister’s recognition of the need for a more detailed picture of cash usage in Scotland, and it is important that this more detailed data be used to inform the Government’s legislative proposals.
Show less
Government response AI summary
The government referenced data from LINK indicating that the proportion of free-to-use ATMs has increased in Scotland and that cash use remains higher than the UK average.
Read full response →
Scotland Office
2
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
We welcome recent initiatives announced by the Cash Action Group to ensure free access to cash in the absence of legislation. However, considering the scale of the population which remains reliant on cash, and likely will do so for the foreseeable future, this does not negate the vital need for …
Read more
We welcome recent initiatives announced by the Cash Action Group to ensure free access to cash in the absence of legislation. However, considering the scale of the population which remains reliant on cash, and likely will do so for the foreseeable future, this does not negate the vital need for legislation. While innovation in digital payments is welcome, Government action is required to ensure nobody is excluded from an increasingly digital economy.
Show less
Government response AI summary
The government acknowledges the Cash Action Group's initiatives and states that the legislation allows HM Treasury to designate industry coordination bodies for FCA oversight.
Read full response →
Scotland Office
3
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
We welcome the Government’s commitment to legislating to protect access to cash. However, we are disappointed about the extended period of time it took the UK Government to announce the legislation, considering the urgency of the issue. We look forward to seeing how specific safeguards to protect access to cash …
Read more
We welcome the Government’s commitment to legislating to protect access to cash. However, we are disappointed about the extended period of time it took the UK Government to announce the legislation, considering the urgency of the issue. We look forward to seeing how specific safeguards to protect access to cash will be set out in the Financial Services and Markets Bill.
Show less
Government response AI summary
The government acknowledges the committee's welcome of the legislation to protect access to cash and states that the Financial Services and Markets Bill 2022 has been introduced to Parliament.
Read full response →
Scotland Office
4
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
The reported increase in the number of retailers refusing to accept cash could significantly inhibit the ability of people who either rely on cash, or choose to use it as their preferred payment method, to participate in the economy and access goods and services.
Read more
The reported increase in the number of retailers refusing to accept cash could significantly inhibit the ability of people who either rely on cash, or choose to use it as their preferred payment method, to participate in the economy and access goods and services.
Show less
Government response AI summary
The government recognized the importance of transacting in cash, but maintained that it should remain the choice of individuals and organizations as to whether to accept cash or card.
Read full response →
Scotland Office
10
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
Deposit-taking ATMs would provide a valuable service to consumers and SMEs in Scotland that have lost their bank branches, while assisting in the sustainability of the ATM network and the long-term provision of cash in Scotland.
Government response AI summary
The government referenced industry efforts to improve coordinated efforts to meet cash access needs, including Cash Action Group commitments to provide shared bank hubs and deposit solutions, and noted FCA oversight.
Read full response →
Scotland Office
11
Recommendation
Second Report - Access to cash in Scotl…
Acknowledged
Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a considerable lack of progress from both the banking industry and the UK Government. Considering the strength of the evidence to support their introduction, we repeat our predecessor Committee’s recommendation that the UK Government set up …
Read more
Attempts to introduce deposit-taking ATMs for both consumers and SMEs have been constrained by a considerable lack of progress from both the banking industry and the UK Government. Considering the strength of the evidence to support their introduction, we repeat our predecessor Committee’s recommendation that the UK Government set up a working group with industry to introduce network-wide deposit- taking ATMs. The rapid rate of bank branch closures and the growing rate of fee- charging ATMs brings into sharp relief the necessity for deposit-taking ATMs to be introduced in areas of greatest need. (Paragraph 67) Post Office
Show less
Government response AI summary
The government referenced industry efforts to improve coordinated efforts to meet cash access needs, including Cash Action Group commitments to provide shared bank hubs and deposit solutions, and noted FCA oversight.
Read full response →
Scotland Office
12
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
The Post Office play a substantial role in the provision of free access to cash for communities across Scotland. We commend the positive action taken by both the banking industry and the Post Office to increase the availability of banking services in Post Offices in Scottish communities.
Read more
The Post Office play a substantial role in the provision of free access to cash for communities across Scotland. We commend the positive action taken by both the banking industry and the Post Office to increase the availability of banking services in Post Offices in Scottish communities.
Show less
Government response AI summary
The government expressed support for the Banking Framework agreement and the Post Office's role, highlighting funding provided to the Post Office and referencing a new agreement with the sector.
Read full response →
Scotland Office
13
Conclusion
Second Report - Access to cash in Scotl…
Acknowledged
Despite the efforts taken by the banking industry and the Post Office, the current cash infrastructure is fragile, and the Banking Framework Agreement is ultimately short-term and voluntary. A decision by any of the major banks to withdraw from Access to cash in Scotland 29 the agreement would have far-reaching …
Read more
Despite the efforts taken by the banking industry and the Post Office, the current cash infrastructure is fragile, and the Banking Framework Agreement is ultimately short-term and voluntary. A decision by any of the major banks to withdraw from Access to cash in Scotland 29 the agreement would have far-reaching consequences for millions of people and businesses that rely on cash. An issue of such importance should not be left to voluntary agreements.
Show less
Government response AI summary
The government expressed support for the Banking Framework agreement and the Post Office's role, but stated that it is not for the government to negotiate the details of commercial contracts and highlighted funding provided to the Post Office.
Read full response →
Scotland Office