WIRRAL Council has revealed plans to open a high street bank in a bid to tackle 'financial exclusion'.

The move will see a main branch and a number of 'satellite' branches opened at key locations across the borough.

Known as community or co-operative banks they will serve those communities which are struggling as the main high street banks close down branches.

A council spokesperson told the Globe that the aim is to help the most vulnerable people in Wirral and also small businesses struggling to access the banking services they need.

Wirral is joining forces with other local authorities in the North West to open the high street bank.

Cabinet member for finance and resources, Cllr Janette Williamson, said: "There is no doubt that it 'costs more to be poor' and working with other councils we are determined to do our bit to help those who need it most.

"Working with Preston and Liverpool councils we want to step in to provide the service the high street banks are failing to provide as they focus on their most valuable customers and shut branches where many of our residents actually need them most."

The bank will be overseen by a board of directors who will appoint a manager and staff with the councils acting only as investors, using their ability to access cheap borrowing available from the Government for this type of project, and will have to undergo rigorous examination by the Bank of England.

According to a parliamentary select committee report on financial exclusion there are 1.7 million people without access to a bank account – which means they cannot access cheaper payment methods such as direct debits and, for example, have to rely on expensive pre-payment meters for gas and electricity.

The Parliamentary report said 53% of UK bank branches closed between 1989 and 2016 and in 2014 the UK had 180 branches per million inhabitants, compared with 447 in Italy, 521 in Germany, 589 in France, and 718 in Spain.

Cllr Williamson continued: "Branches closing down on the high street mean businesses, such as many small traders around Wirral's coast who work mainly with cash, struggle to deposit their money.

"Insurance is expensive if they keep money of their premises and it’s costly for them to travel a lengthy distance to main branches every night to put their money somewhere safe every night.

"It's not just local businesses who will benefit from this.

"Older people use their accounts to receive the pension then withdraw it, often in one go, to pay their bills and other expenses. Many banks find this unprofitable and combined with branch closures it makes managing their finances difficult.

"In addition, there are many people who struggle to get accounts.

"They may not have permanent accommodation or not lived somewhere long enough to qualify to open an account, or have a poor credit history."