Britain's Labour Party has unveiled ambitious plans to breathe new life into the nation's High Streets by opening hundreds of new banking hubs if it wins power in next month's general election.

The party on Monday said it would give regulators new powers to significantly boost the number of banking hubs – shared spaces where customers can access services from multiple banks. Labour is targeting the opening of 350 new hubs over the next five years, a seven-fold increase on the current total.

The move is a direct response to the crisis facing many communities after thousands of traditional bank branches were shuttered across the country in recent years. Consumer group Which? recently revealed that over 6,000 branches have closed since 2015, leaving many areas without easy access to in-person banking services.

"Labour's plan for growth means bringing banking back to High Streets, with hundreds of new banking hubs that can support local communities and their businesses," said Rachel Reeves, the shadow chancellor.

Under the Labour proposal, the Financial Conduct Authority (FCA) would be handed new legal powers to actively identify locations for new banking hubs and compel banks to open them. The party also wants to update the criteria for determining if an area qualifies for a hub.

Angela Rayner, Labour's deputy leader, noted: "With our plan to bring banking back to the High Street, replace business rates and cut energy bills for good, we will breathe new life back into Britain's High Streets.”

While the governing Conservatives have legislated to require the FCA to ensure "reasonable" cash access, ministers say they already have a "clear plan" in place. Bim Afolami, financial secretary to the Treasury, said: "We have taken bold action to ensure we are on track to deliver 225 more banking hubs."

However, an FCA consultation paper in December said "more must be done" on the timely delivery of banking hubs to plug gaps in cash access. Just 50 hubs have opened so far under a voluntary scheme operated by Link, the UK's largest cash machine network.

John Howells, Link's chief executive, said the hubs are "proving a very popular way of providing access to cash and basic banking for consumers and businesses who need to use a High Street branch." But he agreed many more were needed, with his organisation already having recommended locations for 132 potential new hubs.

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