‘We’re the first county to lose every single bank’

Lifelong Rutland resident Derrick Britton was forced to switch banks when his local Barclays closed earlier this year.

He now has to walk further down Oakham High Street, past the butchers, to HSBC, the only bank branch left in the ceremonial county, to get his cash for the week. But the HSBC branch is also slated for closure, having originally been scheduled to shut in June.

The branch will stay open until a banking hub is opened in Oakham, although a lease has not yet been signed for the new centre. 

But while banking activists support new banking hubs, for a community that still relies heavily on cash there are concerns that it won’t offer enough access to notes and coins.

Ron Simpson, director of campaign group Uppingham First, said there was a “huge amount of concern” in the county, both for individuals and businesses. 

“The county thrives on its tourism profile in Oakham – the water, the castle, the museum and so on. It’s a lovely place to come to,” he explains. 

“If you look at the impact on the businesses that make up the tourism industry, a lot of them rely on cash in a variety of different ways.”

‘We might have to go cashless’

Rutland may be England’s smallest county, with a population of fewer than 41,000, but its residents are fiercely community minded.

Locals in Oakham, the county town, are largely retired and favour independent retailers and cafes over chains, and prefer to pay in cash.

But businesses say that without local bank branches to deposit their takings, they may soon have to stop accepting cash altogether.

Matt Lambert, director of upmarket shop Otter Fine Foods, said: “There’s quite an elderly clientele in the area and a lot of them do want to use cash and prefer to use cash.

“When the final branch was to close, there was a thing of, ‘Do we go cashless?’”

But the manager says if the banking hub opens, the business won’t need to get rid of cash payments.

Banking hubs see five lenders share a space, which is kitted out with over-the-counter cash facilities. Cash machine providers Link decide whether a town is eligible for a banking hub, as they cannot be opened in places which still have a traditional branch.

But while some banking hubs have opened in places including Acton, Brixham and Rochford, others have experienced delays due to accessibility and security concerns.

“We won’t need to lose a member of staff for a couple of hours a day to get change or to bank cash if we have a banking hub,” Mr Lambert explains.

In Oakham, in the community centre, there is already a Barclays Local – but while these sites aim to retain access to face-to-face banking, they don’t accept or supply cash.

Outside the town tourists flock to busy Normanton Church, which juts into Rutland Water, England’s biggest man-made lake. There’s jet skiing and a river cruise available – or a “gin cruise” for those out celebrating.

There’s a steady stream of visitors who still want to pay in cash, says Patricia Goodridge, who works in the waterside cafe there. She says: “Especially the older generations, and we do get quite a lot of Europeans as well, so obviously they exchange their cash. 

“A lot of them ask before they take their cash out of their wallet, ‘Do you accept cash?’”

Even the Post Office is at risk

A few miles down the road, the market town of Uppingham is home to a large boarding school. Schoolchildren flood the traders’ stalls at break times and lunchtimes with their tuck money. 

But they cause havoc in the local Post Office, coming in to take out money for snacks, says staff member Marie Smith.

Locals use the branch in the mornings, and market traders go in at the end of a long day to bank their cash, Ms Smith said. But while the residents of Uppingham rely on the Post Office for their cash, the lease on the building is up for renewal late next year, raising concerns about whether the service will remain. 

A graffitied ATM stands in the corner of the market square, charging £1.25 for a withdrawal.

There are three free ATMs in the town, but Ms Smith expressed concern that businesses and more vulnerable customers would not be able to get the services they needed if the Post Office closed.

Her concern was echoed by Stephen Wade, a market trader selling large loaves of bread and a range of sweet treats, but nothing for more than £3. 

The baskets bearing the baked goods are labelled with laminated signs instructing customers, “Cash Only”. The baker said: “Most of our customers are elderly, so they don’t want to use cards, especially for £2 or £3.”

Mr Wade has close family members who rely on cash, and doesn’t want to see it die out. 

“My mum is 88 and she still goes to the bank with a cheque book and has a cheque written out. She gets cash and puts it in separate envelopes. She’s done it for more than 80 years and says, ‘Why should I change?’”

Even in the modern coffee shop on the edge of the square, cash payments are still in demand.

Cris Da Costa says that 20pc of her customers still want to pay with coins and notes for their coffees and cakes. But she says that it takes a long time for staff to bank the cash, as they have to drive to Corby, a trip made once a week.

‘Cashless is inevitable’

Alicia Kearns, MP for Rutland and Melton, says the move to cashless is “inevitable”.

“In January I was really worried as HSBC said they were closing in June, and I said, ‘No you are not,’ but they’ve said now, the commitment is, that they will stay until the banking hub is up,” she says.

As part of a push for the county to become more of a weekend destination, more companies are happy to take cards.

“I have never heard a business in Rutland make a funny noise about taking cards, unlike taxi drivers in London,” Mrs Kearns jokes.

But she hopes that the upcoming banking hub could offer better service for those who still rely on cash and businesses who still need a place to deposit their money, in order to continue to offer a cash service.

The location for the banking hub in Oakham has not yet been confirmed by Cash Access UK.

Telegraph Money believes that a lease will be signed in the coming weeks. But the banking hub will not be opened before 2024.

Mrs Kearns says she hadn’t received additional support since the Prime Minister announced further measures to protect access to cash in August this year. 

Rishi Sunak committed to ensuring that there will be an ATM, Post Office or bank branch within an hour’s walk of every home.

A spokesman for HSBC said: “We understand that closing a branch can be difficult for some customers and the wider community, especially when it is the last branch in the area and there is a gap between a branch closing and a new banking hub opening. 

“In March we announced that we were pausing the closure of our Oakham branch and a handful of other branches while a banking hub or another LINK recommended solution is being put in place. 

“We are actively working with Cash Access UK to ensure continuity of service between our Oakham branch closing and the banking hub opening.”