Thousands of cash points have disappeared during the pandemic with many not being replaced, new data shows.
Around 8,000 ATMs have been switched off in the past 18 months, according to research by consumer group, Which? – equating to a fall of around 13%.
The vast majority of cash machines were put out of action while the UK was under national lockdown between March and May last year.
Research has also found a total of 801 bank branches closed between the start of the lockdown in March 2020 until restrictions were lifted in July this year.
Another 103 branches are due to close their doors by the end of this year.
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The analysis from Which? – based on cash machine data from Link – found there are large discrepancies in the number of ATMs charging for withdrawals in Britain, varying according to different regions.
In the West Midlands, 28% of machines charge users, compared with 19% in the South East.
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The research comes as a new survey revealed 57% of people have experienced at least one issue using cash points or finding a bank on the high street.
Around a quarter had a problem using a cash point in the past year – including 17% who said the ATM had run out of cash or was not working.
Image: Millions rely on cash points and are ‘not yet ready’ to bank digitally, says Which?
A further one in eight said a cash point they used had been removed or introduced charges.
Some 43% of those surveyed said they had been affected by bank branch issues including closures and reduced opening times.
A number of high street banks have announced closures in the past 12 months – as bosses point to a rise in online transactions.
But consumer groups are concerned older people and those without internet access could be left struggling.
Which? has urged the Government to do more to protect consumers.
It has questioned when new rules proposed by the Financial Conduct Authority (FCA), to ensure cash withdrawals can be made locally, will be made law.
Gareth Shaw, Which? head of money, said: “These stark figures show the extent of the damage caused by the pandemic to the already fragile cash system, and demonstrate the consequences that this is having on consumers who are trying to withdraw cash.
“While many people can now bank digitally, millions of people are not yet ready or able to do so. It is consumers who are looking to withdraw and spend cash in nearby shops or the high street who will be hardest hit if they are left without a way to access it locally.
“This should serve as a wake-up call to the Government and the FCA. The cash system is continuing to crumble and legislation on safeguarding access to cash must be introduced swiftly.”
A Treasury spokesperson said: “We’ve committed to legislate to protect access to cash across the UK and we’re currently consulting on proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash.”
The head of the UK’s biggest mortgage lender has said he expects two more interest rate cuts this year, making borrowing cheaper.
Chief executive of Lloyds Banking Group Charlie Nunn told Sky News he expected the Bank of England to make the cuts two more times before 2026, likely bringing the base interest rate to 3.75%.
Two cuts are currently anticipated by investors, the first of which is due to be a 0.25 percentage point reduction next month.
The banking group owns Halifax and Bank of Scotland, making it the biggest provider of mortgages.
Mr Nunn also forecast house price growth of between 2 and 3%.
“We helped 34,000 first-time buyers in the first half [of the year] alone, 64,000 last year. And of course, it was driven by the stamp duty changes in Q1 [the first three months of the year]. So Q2 [the second three months] was a bit slower, but we continue to see real strength in customers wanting to buy homes and take mortgages. So we think that will continue,” he said.
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Expect two more rate cuts this year, says Lloyds boss
It comes as the bank reported higher profits than City of London analysts had expected.
Half-yearly profit at the lender reached £3.5bn as people borrowed and deposited more.
The bank has benefited from high interest rates, set at 4.25% by the Bank of England to control inflation, which have made borrowing more expensive for households and businesses.
Over the last six months, the difference between what Lloyds earns on loans and what it pays out rose.
Mr Nunn told Sky News the profits were due to increased market share in mortgages and small business lending, as well as productivity improvements.
Despite this, Mr Nunn warned the chancellor against raising taxes on financial services, saying it was one of the highest taxed in the world.
The chairman of AO, the online electrical goods retailer, has been interviewed to become the next chair of state-owned broadcaster Channel 4.
Sky News has learnt that Geoff Cooper, a former boss of the builders’ merchant Travis Perkins, is among the candidates in the running to take on the post in the coming months.
Whitehall insiders said that Mr Cooper was now one of the shortlisted contenders awaiting news of whether they would get the nod from Ofcom, the media regulator and culture secretary Lisa Nandy.
In recent weeks, Sky News has revealed that those vying to replace Sir Ian Cheshire include Justin King, the former J Sainsbury boss; Wol Kolade, a private equity executive who has donated substantial sums of money to the Conservative Party; Debbie Wosskow, a start-up founder who already sits on the Channel 4 board.
Simon Dingemans, a former Goldman Sachs banker who sits on the board of WPP, the marketing services group, has also been shortlisted, according to the Financial Times.
Sir Ian stepped down earlier this year after just one term, having presided over a successful attempt to thwart privatisation by the last Tory government.
He was replaced on an interim basis by Dawn Airey, the media industry executive who has occupied top jobs at companies including ITV, Channel 5 and Yahoo!.
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The race to lead the state-owned broadcaster’s board has acquired additional importance since the resignation of Alex Mahon, its long-serving chief executive.
It has since been reported that Alex Burford, another Channel 4 non-executive director and the boss of Warner Records UK, is a possible contender to replace Ms Mahon.
A vocal opponent of Channel 4’s privatisation, which was abandoned by the last Conservative government, Ms Mahon is leaving to join Superstruct, a private equity-owned live entertainment company.
The appointment of a new chair is expected to take place by the autumn, with the chosen candidate expected to lead the recruitment of Ms Mahon’s successor.
The Department for Culture, Media and Sport has declined to comment on the recruitment process, while Mr Cooper could not be reached for comment.
A British space surveillance company which has won a string of government contracts will this week announce a £5.4m fundraising to expand its global network of advanced telescopes.
Sky News understands that Spaceflux, which was founded three years ago, has secured the injection of capital in a round led by the UK Innovation & Science Seed Fund (UKI2S), which is managed by Future Planet Capital, as well as Foresight Group and Blackfinch Ventures.
Seraphim Space, the listed specialist investor in space-related companies, is also contributing funding.
Spaceflux uses artificial intelligence and optical sensors to track satellites and debris across all orbits, with its daylight tracking capability meaning it can expand the observation window beyond night-time operations.
Its provision of space situational awareness technologies is in growing demand amid warnings that a week-long disruption to satellite navigation could incur a £7.6bn hit to the UK economy.
In a statement to Sky News, Marco Rocchetto, CEO and co-founder of Spaceflux, said: “As space becomes increasingly essential to our economy, environment and daily lives, it is also becoming more congested and contested.
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“This investment strengthens our ability to protect satellite technology that delivers crucial insights to Earth around the clock, reducing collision risks, and supporting a safer, more sustainable space environment for future generations”.
The valuation at which the funding was being committed was unclear on Thursday.
Spaceflux, which serves government and commercial customers, has been the exclusive provider of geostationary satellite tracking for the Ministry of Defence and UK Space Agency since 2023.
Alex Leigh, an investment director at UKI2S, said: “This investment marks a significant step in the convergence of defence and space, where dual-use technologies are becoming increasingly important to UK capability.
“Spaceflux’s technology offers critical insights to help monitor and safeguard orbital assets – supporting both national security and the wider commercial ecosystem.
“The company is well-positioned to scale its impact and meet the needs of customers navigating an increasingly complex space environment.”