Select committee: Scottish Affairs Committee
Conclusion 3
Second Report - Access to cash in Scotland
Published 11 Jul 2022
Paragraph 27
Addressed to Scotland Office
Scottish Affairs Committee Access to cash in Scotland All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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.
From: Scottish Affairs Committee, Second Report - Access to cash in Scotland (HC 80), paragraph 27, 11 July 2022
Government response
The government responded to the whole report on 19 October 2022.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government notes the Committee's recommendations, points to the access to cash provisions in the Financial Services and Markets Bill and to industry-led initiatives, and says some matters are for individuals, industry or commercial parties rather than government.
- On cash acceptance, the government "notes" the recommendation for FCA monitoring, says it "engages closely with the financial regulators to monitor and assess trends relating to cash", and holds that acceptance should "remain the choice of individuals and organisations".
- On ATMs and deposit-taking, it does not commit to mandating LINK membership or setting up a working group. It says it is "not the Government’s intention for the Bill to determine how industry provides access to cash facilities", while the Bill gives the FCA powers to ensure reasonable provision of withdrawal and deposit facilities.
- It says it "remains supportive of initiatives by industry" such as the Cash Action Group, and that the legislation allows HM Treasury to designate industry coordination bodies for FCA oversight.
- On the Post Office Banking Framework, it says it is "fully supportive" and that a new agreement runs from January 2023 to December 2025, but that "it is not for Government to negotiate the details of commercial contracts". It cites a further £335 million for the Post Office over three years.