The UK government has commissioned an independent review to assess the impact of branch closures on communities and individuals.
The review will gather evidence on the real-world effects of reduced in-person banking provision and will inform new legislative powers that could allow the government to intervene where access is found to be inadequate.
Legislative backing and scope
According to the official press release, the review sits alongside a forthcoming Financial Services and Markets Bill, announced in the King's Speech, through which the Treasury intends to include a power to act swiftly should the evidence support intervention on access to banking. This legislative mechanism is intended to give the government a direct route to respond to the review's findings without delay.
The review will focus on identifying which groups and communities are most affected by branch closures, assessing current provision, and determining where further action may be required.
The broader context is a sustained contraction in physical banking infrastructure. Banks and building societies have reduced their branch networks in response to falling footfall and the growth of digital banking. However, for segments of the population (including older adults, people in rural areas, and those with limited digital access) in-person services remain an important means of managing finances.
Cash Access UK, the body responsible for coordinating shared banking infrastructure, noted that 237 banking hubs and over 140 deposit services have been opened to date, and reported that 95% of customer needs are met at hub locations. The Building Societies Association noted that building societies and credit unions account for more than one in three high street branches and continue to invest in both digital and physical channels.
Credit union reforms also confirmed
Alongside the review, the government confirmed that credit union common bond reforms announced in March 2026 will be included in the forthcoming Bill. The changes are designed to make it easier for credit unions in Great Britain to expand their membership and broaden access to affordable credit and savings products. The reforms are framed as part of the government's manifesto commitment to grow the mutuals sector and strengthen community-based financial services.
The dual-track approach, representing a time-limited independent review paired with pending legislation, reflects the government's intent to move from evidence gathering to potential regulatory action within a defined timeframe, with the October 2026 report deadline creating a clear window for legislative follow-through.
