Natwest Newhaven closure

2012 press releases

4th Jan: Newhaven's MP takes concerns about the NatWest closure to the top

Newhaven's MP, Norman Baker, has written to the Chief Executive of the RBS Group, Stephen Hester, to urge for the decision to close the NatWest branch on Newhaven High Street to be reversed, and has also written to the Business Minister, Mark Prisk MP, to ask that he looks at this case.

The NatWest branch is scheduled to close in March, with the bank citing low demand as its reason, but in letters to both the Chief Executive and the Business Minister, the local MP has called the bank's reasoning into question, pointing out that regeneration plans that have gained momentum since the high level stakeholder meeting that took place last month will improve demand.

In addition, the closure of a bank that is part of the RBS Group will have a disproportionate effect on the elderly and small businesses who will now have to make a round trip of up to six miles to either Peacehaven or Seaford if they wish to speak to an advisor face-to-face.

Norman says: "With Barclays being closed, NatWest's decision to close its branch is a further bitter blow, and I really do question its decision. The people of Newhaven have not taken this lightly and there is no doubt that it will damage whatever reputation NatWest and its parent group RBS has. It is ridiculous to expect the elderly and local businesses to take a six mile round trip to speak to an advisor face-to-face.

"I also believe that this is a poor commercial decision. Plans for regenerating Newhaven are gaining significant momentum following the high level stakeholder meeting that took place last month and if NatWest pulls out now it will see no benefit from the plans. I have made these points very clear in my letter to RBS's Chief Executive, which I have also drawn to the attention of the Business Minister, and I expect the Chief Executive to reconsider this decision."

Norman's letter to Stephen Hester

I am writing to highlight my significant concerns about the decision to close the NatWest branch in Newhaven High Street, East Sussex.

I must say that I am very concerned about this announcement. While I acknowledged the apparent reason for this decision being reduced demand, I hope you will agree that that provides little consolation for customers, particularly the elderly, who will now have to make a six mile round trip to speak to an advisor face-to-face in either Seaford or Peacehaven. I would also point out that it is often those who find it hardest to get around that do not have access to internet banking.

This decision will also affect local businesses which use the branch and which will also have to travel many miles to speak to a advisor face-to-face, costing valuable time and money during an economic time, much as a result of the banking collapse, where such additional costs need to be avoided.

Newhaven is a town that has suffered in recent years due to a lack of investment, but progress is being made and I believe it has huge potential. Only last month I chaired a high level stakeholder meeting to progress regeneration plans for Newhaven which included, amongst others, the port's owners, East Sussex County Council, Lewes District Council and Newhaven Town Council. The meeting was very productive and I enclose a copy of the press release that was issued for your information.

I would also point out that, as far as the reputation of NatWest and, by association, the RBS Group is concerned, this is not a decision that residents of Newhaven will take lightly, as you will note from the recent report in the local paper that I enclose. I believe that, even excluding the above points about regeneration, subsidising a branch that might not be performing sends out a good message that NatWest values its customers, and lest we forget that it is the residents of Newhaven, as taxpayers, who have ensured that NatWest did not implode.

As I said, this is in my view the wrong decision that will harm the reputation of NatWest and the RBS Group and have a disproportionate effect on the elderly and local businesses. I also think it is the wrong decision commercially as this closure will prevent NatWest from benefiting from the regeneration plans that are gaining momentum. I must therefore request that this decision is reversed.

I look forward to your reply.

Yours sincerely

Norman's letter to Mark Prisk, Minister of State at the Department for Buiness, Innovation and Skills

Please find enclosed a copy of the letter that I have sent to Stephen Hester, Chief Executive of the RBS Group, regarding its decision to close the NatWest branch on Newhaven High Street, East Sussex. This decision means that it is only HSBC that remains.

The port owners, East Sussex County Council, Lewes District Council, Newhaven Town Council and I are working very hard to try to ensure that Newhaven and its businesses have a bright future and plans for regeneration are gaining momentum. This is positive, but I believe that the closure of the NatWest branch sends out the wrong message and is a matter of significant concern. I outline my reasons why in the enclosure.

I do appreciate that this is a commercial decision, but as the Minister responsible for small businesses and local economic development I wanted to draw this to your attention and ask for your comments, which would be gratefully received.

I look forward to your reply.

Yours sincerely