JEFF PRESTRIDGE: A tale of two branches

It doesn’t take much effort to figure out which banks and building societies would like you to use their branches – and which would rather you not, giving them the excuse to shut them down.

A few days ago I was drawn to a notice in the window of the NatWest branch that I pass (occasionally run) on my way from London Paddington to work in Kensington. With the headline ‘Stay Safe in the Industry’, it encouraged anyone considering entering to think twice – and certainly not enter before donning a mask.

Once inside, hand sanitizers must be used and a safe distance must be maintained between you and other office users. Hardly a friendly welcome – and one that fits 2021 more than 2023.

Compare that to the Nationwide in my home town of Wokingham in Berkshire, which continually promotes local charities in its industry. It also actively encourages locals to join the largest construction association in the country.

“If your local bank closes, why not join a building society?” asks in a leaflet pasted to his shop window.

The last paragraph of NatWest’s notice tells you everything you need to know (if you didn’t already know) about its view on branches: “Do you want to bank from home instead?” Then it promotes its app, online and video banking. In other words, don’t go in – bank from the comfort of your home.

As for Nationwide in Wokingham, the bank whose customers are firmly in their sights is NatWest. It was the last bank in the city to leave the main street when it closed in February this year.

For now, Barclays, HSBC and Lloyds are holding out, although I imagine given the dilapidated state of their branches it won’t be long before they close their doors too. To quote half a line from 1970s singer Sparks, “This town ain’t big enough” for all these couches.

By this time next year, I’d wager that Nationwide will be the only banking show in town.

…and where are the hubs?

Speaking of bank branch closures, it’s good to hear that Link, an ATM network provider, has just made its 52nd recommendation for a banking hub – a shared branch, operated by the post office, where customers from all major banks can make use of.

Under an agreement with the banks and various consumer groups, the hubs will be introduced in communities that have lost their last bank branch. The latest will be installed in Bramhall, Greater Manchester, and will allow customers to deposit and withdraw cash on specific days, pay bills and speak to staff at their own bank.

As a long-time campaigner for such community banks, it’s great that they’re finally coming to our high streets. Yet the rate at which recommendations are turned into bricks and mortar remains painfully low. Of the 52 proposed by Link, only four have seen the light of day so far – one more will open next month.

The birth of hubs is due to Cash Access UK. But, heavily funded by the country’s major banks and operating under strict rules set by them, this worthy organization struggles to deliver on Link’s promises.

A few days ago, a resident of Welshpool in Powys, with whom I have spoken occasionally about her town’s proposed banking centre, told me that it has been postponed again to ‘later this year’. A delay, she says, that will jeopardize the future of many local businesses and residents. If only banks could be as enthusiastic about opening hubs as they are closing branches.

Follow in Rob’s footsteps

On Sunday I will be pounding the streets of Leeds in a quest to complete the Rob Burrow Leeds Marathon.

While the pain will be great, it will be eased by the fact that I am running for a great cause: funding a specialized care center for motor neuron diseases in the city.

MND is a cruel disease that Rob, a great rugby league player in his day, struggles with. So every ache, cramp and muscle tear I experience during the 26.2 miles will be worth it.

Fiscal wins – if tenants suffer the death of the landlord

When it comes to housing, this government is out of control.

Despite a manifesto promise to build 300,000 new homes a year, homebuilders are not delivering. They are not helped by the eagerness of many local authorities to refuse building permits for new estates – sometimes for the right reasons (lack of supporting infrastructure); other times for the wrong reasons.

Meanwhile, social housing continues to decline sharply – a result of chronic underfunding – while the private rental sector is shrinking day by day. Landlords, hit by rising taxes and rising interest rates, are giving up the ghost, resulting in a dire shortage of rental properties. An imbalance between supply and demand has allowed the remaining landlords to raise rents, knowing that in most cases the tenants will pay.

A good friend, now in her late 70’s, has been told her rent will rise more than inflation at the end of this month. She was already partially dependent on housing benefit and had no choice but to look for a new place to live. The search proves difficult – most managers are not interested when they mention housing benefit, while social housing or social rental housing is a non-starter.

The latest figures from Her Majesty’s Revenue & Customs confirm the tax bonanza the government is enjoying from the death of the private landlord.

Capital gains tax revenues from the sale of rental properties are rolling in – and were a big factor behind the increase in total CGT tax receipts last fiscal year. They totaled £18.1 billion compared to £15.3 billion in the previous tax year.

With the annual tax-free allowance for crystallized capital gains set at £6,000 (compared to £12,300 in the tax year just ended) and being reduced to £3,000 in April, CGT receipts from buy-to-let properties are likely to continue their upward trend .

Good news for the cashless taxpayer, but terrible for renters. Short-term thinking at its craziest and most destructive.

Don’t miss out on this £3k upgrade

Pension credit is a benefit that can make a real difference in the lives of those who have reached state pension age and are struggling to make ends meet. Still, it’s not handed out automatically – it must be claimed.

Sadly, for a variety of reasons — pride, lack of awareness, or a perception (misconception) that’s hard to claim — more than 850,000 retirees miss out by sitting on their hands. As a result, pensioners lose out on around £3,300 a year.

The credit is available to people with an income of less than £201.05 a week – £306.85 in the case of couples, both of whom must be over state pension age. Income includes your state pension, savings and investments, income and most social security benefits.

Claim details are available at gov.uk/pension-credit/how-to-claim. Those who make a successful claim before Friday will also be entitled to a cost of living payment worth £301. It could entitle them to housing benefit and a reduction in council tax. Don’t be shy – apply.