Chancellor Rishi Sunak is under pressure to legally enshrine free access to cash in rural areas, after more than a fifth of ATMs closed in one north-east constituency.
A change in the law was first raised in the March 2020 budget but was delayed by the Covid-19 pandemic.
Now, Conservative MP Andrew Bowie is calling for the Chancellor to push this to the top of the agenda at the state opening of parliament on May 10.
His West Aberdeenshire and Kincardine constituency saw 22% of its free-to-use ATMs close between August 2018 and December 2021.
The proposals would introduce new laws to make sure people only need to travel a “reasonable distance” to pay in or take out cash.
Cash in rural communities
The MP has been contacted by hundreds of constituents calling for the legislation to be introduced as part of the government’s next programme.
It comes after the Banchory branch of Virgin Money closed earlier this year – one of 12 closed across Scotland.
And more recently Lloyds Banking Group announced a total of 60 branches – 24 Lloyds, 19 Bank of Scotland and 17 Halifax – will close later this year across the UK.
This includes six Bank of Scotland branches across the north and north-east, leading the bank to be accused of “abandoning” the vulnerable and elderly.
In a letter to Mr Sunak, Mr Bowie, whose constituency is one of the largest rural constituencies in the country, said: “Cash is still a crucial part of life, it helps many elderly and vulnerable people budget effectively and having access to it is vital, especially in rural communities.
“The current cost of living crisis and in particular the high cost of fuel prove that access to cash in rural communities is more important than ever.
“There is no better time to implement this legislation, it was on the agenda two years ago and whilst I understand the delay due to other priorities, such as the pandemic, failure to help communities protect their access to cash could leave vulnerable people at crisis point and potentially impact negatively on local high streets.
“I was fully behind these proposals when they were brought forward in 2020 and would urge you to consider putting them back on the table as part of our programme next month.”
‘Protecting access to cash across UK’
The UK Government has considered responses to the consultation and is due to be setting out its next steps in “due course”.
An HM Treasury spokeswoman said: “We know that cash remains vital for millions of people and we are committed to protecting access to cash across the UK.
“That’s why we have consulted on plans for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash, and have already legislated to enable shops to offer cashback to customers without them having to make a purchase.”