RBS and Clydesdale bank closures in Scotland
GETTY RBS and Clydesdale Bank are to reduce the number of banks in Scotland
Business leaders warned of a "devastating" impact for firms which could hamper the country's economy. They demanded political action to prevent institutions from closing the "last bank in town". There are fears that the changes will mean even more empty units on struggling high streets across the country. Holyrood's economy committee is investigating the shutdowns, with more than a quarter of branches wound up over the past five years.
Taxpayer-owned RBS sparked fury earlier this year with plans to close 62 branches across Scotland. They were forced into a partial U-turn, with the closure of 10 branches now on hold. Bank of Scotland and Clydesdale Bank have also announced plans to further reduce their branch network in Scotland. Barry McCulloch, senior policy adviser with the Federation of Small Businesses Scotland (FSB), warned the closures could "thwart attempts to regenerate towns and high streets".
He said: "It will undeniably impact confidence and have a devastating impact on the local economy." Mobile vans do not come close to providing the services offered by branches, Mr McCulloch added. He said one member in Durness, Sutherland, faces a three-hour round trip to the nearest bank. The FSB has stepped up demands for the UK Government to use its position as the majority shareholder in RBS to stop the current closure programme.
Banks should be more proactive and put in position where they are not just walking away Phil Prentice
Scottish Grocers Federation chief executive Pete Cheema said: "It's going to cause the Scottish economy big issues if we are not careful. "We're looking for a solution but we have already got a solution. We shouldn't be closing the last bank in town." He added: "The solution is there and I think you guys need to take the action." Phil Prentice, from Scotland’s Towns Partnership, said he understood the need for branch closures amid moves towards a cashless society.