Banks are trying to “cancel the countryside”, a senior MP has said, as The Telegraph can reveal gun clubs are the latest victim of de-banking.
A third of shooting businesses have had their accounts suddenly closed down, research has shown, with major high street banks including HSBC, Barclays, Lloyds and NatWest among those named as having refused accounts or credit to businesses linked to the rural pursuit.
It comes after The Telegraph revealed that hunts have been banned from taking card payments through major financial services firm SumUp.
The revelations have led to concern from former ministers and campaign groups that rural businesses are being unfairly targeted and “treated like criminals”.
Sir Robert Goodwill, the Tory chairman of the environment committee and a former Defra minister, said: “Shooting is not only a perfectly legal act, it contributes tremendously to management of the rural environment and habitats for wildlife.
“They’re de-banking people for conducting an entirely lawful and in my view environmentally positive undertaking and trying to cancel the countryside and rural way of life. This is an outrageous infringement of landowners’ rights to do whatever they wish with their land. It’s all becoming a little bit Big Brother.”
The scandal of de-banking first hit the headlines when it emerged that Coutts had closed the account of Nigel Farage because of his political views and there has now been a deluge of claims about accounts being shut down.
A threat to free speech
Jeremy Hunt, the Chancellor, told broadcasters on Thursday that de-banking was a threat to free speech and could be more widespread than had been thought.
“I’m worried that it may exist more than we had thought,” he said. “And the reason I’m worried is because free speech is a fundamental human right… In today’s society you need a bank account to function and so a threat to be de-banked, as the word is now widely used, is a threat to your right to express your opinions.”
He announced that he had written to the Financial Conduct Authority and the regulator was “going to urgently investigate how widespread this practice is, and put a stop to it”.
“Having your bank account removed because of your political views is very clearly against the law – it shouldn’t be happening,” he said.
The FCA said it would be asking major banks and building societies to provide data on the number of account closures and the reasons behind them over the coming month.
Mr Hunt said that the Government would decide if any further action was needed after that investigation.
The British Association of Shooting and Conservation (BASC) has written to the Treasury warning that shooting businesses have been experiencing issues for a number of years and it called for the industry to be included in any review of de-banking.
‘A rottenness at the heart of banking’
Sir Jacob Rees-Mogg, a former business secretary, said: “It seems to me that Nigel has exposed a rottenness at the heart of banking, that they have decided to impose their political views on their customers who are carrying out lawful activities.
“As they were bailed out by all taxpayers after the banking crisis in 2008, they ought to provide services to all lawful businesses and not apply their warped view of morality.
“The whole thing seems to be out of control. Woke metropolitan types seem to be imposing their minority view of the world on the rest of society, and this is troubling in a democracy.”
Research sent by BASC to Andrew Griffith MP, the economic secretary to the Treasury, showed that 37 per cent of shooting clubs, syndicates and trade organisations had experienced the sudden closure of an account, with trade most likely to be impacted.
Of those, 33 per cent said that the account was closed by HSBC, 22 per cent by Barclays and 6 per cent by NatWest.
Asked about the findings, Mr Griffith, told The Telegraph: “Parliament has decided that country sports remain a lawful activity. Representing a rural constituency, I know that they can make a significant contribution to local economies and maintaining the countryside.
“The Government has made clear that customers must be given clear and transparent reasons for closing an account or service as well as increasing the notice period. Banks must not ‘hide’ behind financial regulations.”
Two thirds had difficulty opening account
The BASC survey, first published last year, also showed that 65 per cent of respondents reported difficulties opening an account, most commonly with Lloyds (38 per cent), followed by HSBC (35 per cent) and NatWest and Barclays (32 per cent).
Almost a third indicated that they had had difficulty obtaining credit. Across the survey, which had 320 responses from the industry, Barclays and HSBC were mentioned most frequently alongside all reported difficulties.
The most common reason given by the banks to explain the difficulties was that it was “policy not to associate/work with anyone connected to firearms”.
Others were told “that my business fits into the categories: High risk and limited appetite businesses” and one said that they were forced to sign documents saying that they would not “engage in the international arms trade”.
One respondent said “within weeks of discovering my company was involved in shooting, [bank staff] summarily closed all my personal and business accounts (six accounts) and provided no reason. All accounts had been in credit and had been in good order for more than 20 years.”
Dr Conor O’Gorman, BASC’s head of policy and campaigns, said: “Banks should not be arbitrarily shutting down business accounts or refusing to open accounts on a bank manager’s whim and with no explanation given. Shooting sports are a lawful activity and we should not be treated as potential criminals by the banking sector.”
‘Appalling conduct’
Dame Priti Patel, the former home secretary, said: “This is another example of where Britain’s banks are politically compromised. Banks need to get back to providing access to financial services and stay away from passing political judgement as to who can bank with them.
“Treasury ministers have an opportunity to reform the appalling and degrading conduct led by the banking echelons and stand up for Britain’s small businesses and the self-employed who the banks have attempted to shut down.”
A Barclays spokesman said that it complied “with our legal and regulatory obligations” and it would “only withdraw banking services from an individual or business in exceptional circumstances”.
He added: “We support the Government’s initiatives to standardise the approach across banks, including non-exclusion on the basis of political views or beliefs.”
A NatWest spokesman said it provided “banking services to businesses, clubs and societies involved in shooting, subject to appropriate legal, licensing and due diligence requirements being met by the customer”.
A spokesman for HSBC UK Commercial Bank said that it worked with legitimate shooting businesses, adding: “We comply with all legal and regulatory requirements. Decisions on customer accounts are always the subject of careful consideration and are never taken due to the legal, political, or personal views of a customer.”
Lloyds did not respond to a request for comment.
