Spending a penny is the future of finance — as cash hubs in public loos could replace bank branches

SPENDING a penny is the future of finance — as cash hubs in public loos are touted to replace bank branches.

The news came as MPs on the Treasury Select Committee yesterday grilled the bosses of the UK’s biggest banks about access to cash and de-banking individual customers.

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Anne Marie Morris, MP for Newton Abbott, demanded answers about the scale of bank closures and said she had seen plans for a cash hub in a “public lavatory”.

Banks and building societies have shut 5,908 branches since 2015 — at a rate of 54 each month — to almost half the number of branches that existed a decade ago.

Despite all of these closures, there are currently just 35 Cash Access hubs, with an ambition to open 100.

Ms Morris told bank bosses: “The promise from all of you has been that when branches go there will be an implementation of a cash hub with Cash Access UK.

“It is fundamentally flawed. It is under-resourced, there is not enough money, there are places that need to be established.

“We have one hub in a public lavatory. I hope you’re not proud of that.”

The Sun confirmed Cash Access UK — responsible for setting up hubs — is in the process of agreeing a lease for a former public loo to use for banking services instead. It is understood to be in the South West.

Barclays chief executive Vim Maru defended closures as a symptom of consumers’ changing banking habits.

He told MPs: “Branch usage is down 65 per cent, but app usage is up 120 per cent. So we have been responding to consumer demand.”

Charlie Nunn, boss of Lloyds, said there had been a 50 per cent drop in customers in branches, but his bank is investing in Post Office counters and ATMs to help with access to cash.

Barclays has shrunk its network the most, with 1,168 closed, followed by Natwest, Lloyds and Santander, according to Which? data.

Cash Access UK said it has opened hubs in former shops, cafes and bank branches, as well as more unusual locations like an old mill.

On de-banking — which involves banks closing accounts deemed a financial, legal or reputational risk — NatWest, Santander and Barclays said their programme to update customer information has resulted in a wave of closures of inactive or dormant accounts.

Santander closed 37,000 accounts last year, the “vast majority” due to the programme, it said.

NatWest said most of its closures are for fraud or financial crime and an “absolute minority” involve concerns about a customer’s reputation.

Ken not afford it

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MORE than £6 billion has been wiped off the value of luxury powerhouse Kering after a slump in sales at Gucci.

The fashion brand, which dressed Ryan Gosling in a custom pink suit for his Ken-inspired performance with Guns N’ Roses guitarist Slash at the Oscars, has suffered a 20 per cent slump in sales over the first three months of the year.

Luxury brands have defied the cost of living crisis up until now because wealthy shoppers have kept spending.

But now Gucci is suffering from squeezed budgets in China and the exit of designer Alessandro Michele.

 Shares in parent firm Kering, which also owns Alexander McQueen, Saint Laurent and Balenciaga, tanked by as much as 14 per cent after yesterday’s warning. It also knocked shares in rivals Burberry and LVMH.

Brewer’s Shepherd delight

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BRITAIN’S oldest brewer, Shepherd Neame, has posted record revenues despite selling less beer.

The 300-year-old business said that overall sales had increased by 4.3 per cent to £89million for the six months to December 23.

But sales in its brewing division fell by 3.8 per cent to £29.2million on the back of a 10.5 per cent fall in volumes.

Sales of its own cask ales, such as Spitfire and Bishops Finger, fell even more by 16.7 per cent, although the division returned to profit to the tune of £200,000.

Shepherd Neame has put up prices over the past two years to cover higher ingredient and glass bottling costs.

The firm said it had pulled back from supplying as much to supermarkets because of lower profit margins.

Shepherd Neame’s pre-tax profit fell to £1.1million from £5.5million the previous year.

Mike’s in training

BILLIONAIRE Mike Ashley has taken a job as a consultant to model train firm Hornby.

Mr Ashley’s Frasers Group has a 9 per cent stake in Hornby, which has celebrities Jools Holland and Rod Stewart as enthusiasts.

 Hornby said Mr Ashley would give advice on operations, logistics and strategy.

 He will not receive a fee for his consultancy services but will benefit if he can revive Hornby’s share price.

Mortgage hope

MORTGAGE rates are coming down again after a sharp fall in inflation.

Natwest yesterday cut its five-year rates for 90 per cent loans from 5.54 per cent to 5.30 per cent.

Loans are priced off what financial markets expect will happen over coming months, rather than waiting for the Bank of England to act. The Bank is expected to hold rates at 5.25 per cent today.

 Rightmove expert Matt Smith said there was “renewed optimism” over the direction the economy.

HOLLAND & BARRETT is the latest retailer to up wages. Staff will get a nine per cent boost, from £11 to £12 an hour, with a rise in London from £11.95 to £13.

 Tesco, Co-op and Primark are among others hiking pay in order to recruit and keep staff.

Flight fee trim

TRIPPERS could pay less to fly in and out of Heathrow after the Civil Aviation Authority ordered it to cut fees for airlines by six per cent for the next two years.

The charges are generally passed on to passengers, with the average this year at £25.43 per traveller. That is now set to fall to around £23.72 in 2025, and to £23.70 in 2026.

Heathrow, which has returned to profit on the back of a boom in holiday bookings, had argued that it should be allowed to charge £42 per passenger.

This post first appeared on thesun.co.uk