Improving banking services for charities

That this House recognises the vital role charities play in supporting communities across the UK; notes with concern the widespread banking difficulties facing the charity sector, including account freezes, lost records, and barriers to opening new accounts; further notes that poor banking provision is placing charitable services at risk, forcing some volunteer trustees to use personal bank accounts to meet financial obligations and in some cases driving experienced trustees to resign; acknowledges that these challenges disproportionately affect smaller charities and those serving the most vulnerable in society; believes that volunteer trustees who give their time freely in the service of their communities deserve better support from the financial sector; and calls on the Government to work urgently with the Financial Conduct Authority and UK banks to improve banking services for charities, simplify compliance and identity verification processes, ensure bank staff are properly trained to understand how charities operate and introduce stronger protections to prevent charities from having their accounts frozen or closed without adequate notice or justification.