Somerset MPs have urged the government to prevent bank branches in more rural areas from closing to ensure residents and businesses can continue to access cash.

Frome and East Somerset MP Anna Sabine organised a debate at Westminster Hall on Wednesday (December 11), calling on the government to promote "financial inclusion" and prevent rural areas from falling into poverty as banks closed branches or reduced opening hours.

Fellow Somerset MP Adam Dance supported Ms Sabine's calls, arguing the government needed to go further in providing banking hubs in areas where branches had closed – including in Ilminster, within his Yeovil constituency.

The government has stated access to financial services was "a key priority" and said rural MPs' concerns would be taken on board.

Ms Sabine – one of six Liberal Democrats MPs elected to Somerset seats at July's general election – began the debate by highlighting the scarcity of bank branches within her own constituency, which includes Frome and the neighbouring towns of Midsomer Norton and Radstock.

She said: "I have been heartened to hear the new government talk about financial inclusion, but more rural areas face a whole host of issues that make the challenges around financial inclusion even greater.

"Frome has recently been allocated a banking hub, after our last bank branch announced that it would close.

"Thankfully, Midsomer Norton still has two bank branches open, but they serve surrounding areas as far as the city of Bath, meaning that residents in the surrounding villages still have to travel miles to reach their nearest bank.

"Access to cash and face-to-face banking is vital for about five million customers across the UK who may be vulnerable because of low income or age, and in rural areas many people are dependent on cash for their livelihoods.

"When bank branches close, which is already more likely in rural areas, residents are increasingly vulnerable because the alternatives are more physically spread out, and after losing free-to-use cashpoints, rural residents have to travel three times as far to get cash as those in urban areas."

Within Frome and East Somerset, around £630,000 is withdrawn from cash machines and bank branches in any given month.

Ms Sabine said the loss of bank branches and free-to-use ATMs were hitting the poor and elderly hard, arguing it made it harder for them to budget effectively from week to week.

She said: "For people on low incomes, cash can act as an effective method to budget efficiently.

"Many elderly people feel excluded by the increasing reliance on digital services.

"We know that 93 per of people live within one mile of an ATM, which on paper sounds good – but that does not take into account issues that might come up in rural areas.

"For example, if someone lives in a village or hamlet, that one-mile walk might have no safe walking routes and no bus connection.

"That is why we want to see the legislation expanded to include specific geographical, physical and societal barriers, so that they are taken into consideration.

"With the closure of bank branches, banking hubs are becoming a lifeline for many towns, reinvigorating high streets and increasing footfall."

Mr Dance said that the government's current plans for more banking hubs did not go far enough, calling on Link (which runs the UK's cash machine network) to reconsider its recent decision not to set up a banking hub in Ilminster.

He said: "Does my honourable friend share my concern that the government's plan to build 350 banking hubs over five years across the entire country is not enough to ensure proper access to in-person banking and cash services in rural communities?

"Does she also share my frustration that the town of Ilminster in my constituency has just been denied a banking hub by Link's reassessment? Will she join me in calling for Link to reconsider its decision?"

Ms Sabine said she found such situations "very frustrating", adding: "Shutting branches and opening banking hubs is currently financially efficient for banks, but there is a real risk that those banking hubs could close after a few years once the banks stop saving money and see the hubs as a drain on their profits instead of a benefit.

"We need reassurance about the long-term provision of banking hubs and a requirement on banks to keep funding them on an ongoing basis.

Rural areas deserve the same levels of financial access as everyone else, and I urge the government to bear that in mind in their decision making."

Emma Hardy, parliamentary under-secretary for the environment, food and rural affairs, said ensuring equal access to financial services was "a key priority for the government" and acknowledged the challenges facing rural communities.

Ms Hardy – who represents the constituency of Kingston-upon-Hull West and Haltemprice – said: "I know that many rural constituencies are concerned about the availability of cash, especially when they rely on it to pay for essential goods and services.

"Arguments have been made by some – not by the government – that people are using digital more and more, so there is less need for cash.

"However, we recognise that for some people it is the only way of paying bills and accessing funds. It is important that we continue to have it, because many rely on it for essential goods and services.

"If people have already made a community request to Link and it has decided that no banking hub is needed, they can ask Link to review the decision within 28 days of the original assessment, stressing their concerns and evidence. I urge people to take advantage of that appeal process.

"There is a lot of support in this room for banking services, and a recognition of the importance of face-to-face services and access to cash.

"It is crucial for everybody in our society to have access to the financial services they need, regardless of where they live."