The Federation of Small Businesses (FSB) has welcomed proposals to protect access to cash withdrawal and deposit facilities, for consumers and businesses.

The Financial Conduct Authority (FCA) made an announcement last week on maintaining reasonable access to cash.

Martin McTague, national chair of the FSB, said: "The FCA's cash access protection proposals are highly welcome, and recognise the impact that loss of cash facilities such as bank branches and cash machines can have on local businesses and communities. It's extremely important both consumers and small firms have choice over payments, so we're pleased to see positive steps to help maintain that in practice.

"Cash is still a key payment method for countless small businesses, with our research finding that one in four high street firms say it is the number one payment method of choice for their customers. It is vital for many people in vulnerable groups, as well as for overseas visitors.

"It is crucial that cash services are still accessible to small businesses who need to provide a variety of payment choices. Cash is also an integral back-up when electronic payments systems aren't available, and in areas with poor connectivity.

"Small businesses will be especially glad to see a new proposed requirement for designated banks and building societies to carry out an assessment of how the closure of a cashpoint or branch would affect overall cash access and deposit facilities in a locality, and how future gaps can be plugged."

The FSB was also pleased to see reference to the cash and banking services available through local Posts Offices.

Martin McTague continued: "Too many times in recent years, we have heard from small firms who are deeply concerned about the closure of the last branch in their town or area, with knock-on effects on cash availability for consumers, and cash handling services for businesses. This is a problem which has accelerated in recent years.

"The proposals also strongly support banking hubs, where a number of banking and deposit services are available to local communities and businesses in places where the nearest bank branch is some distance away. These can be helpful, even if they don't replicate the full range of services of a branch. These proposals should drive the increasing momentum and support behind banking hubs and help to accelerate their introduction in high streets and town centres."

The FSB now hopes the proposals will become reality, ensuring cash access for as many people as possible.