Nigel Farage's Coutts row forces Bank of England to make significant 'change for millions'

New rules will come into force next year which mean will have to give customers 90 days' notice before closing their account. The changes announced by the follow a row between Coutts Bank and Reform leader Nigel Farage.

Two years ago, the NatWest-owned bank closed one of Farage's accounts, with reports citing his political views as one of the reasons. The banking giant has now said sorry to the Clacton MP and was thought to have resolved the dispute - although the exact terms of the settlement were not disclosed.

The Bank of England said banks will also have to provide a clear explanation as to why they are closing a customers' account; at the moment banks also only need to give two months' notice.

The regulations come into force in April 2026 and are part of the Government's Plan for Change which are aimed at making sure millions of people and small business owners are better protected against their bank account being closed.

Banks will also need to provide a clear explanation to customers in writing, so people can challenge decisions, such as through the Financial Ombudsman Service.

The new rules will give customers more time to challenge decisions they disagree with and find a new bank if their account is closed. This will support small businesses which have complained about their account being closed without reason at short notice - leaving them no time to complain or find a replacement bank.

Emma Reynolds, economic cecretary to the Treasury, said: "Delivering economic security for working people is at the heart of our Plan for Change and strengthening protections against debanking will protect people's and businesses' access to banking services.

"Under the new rules, customers will receive more notice of account closures, be entitled to an explanation as to why their account has been closed and have more opportunity to challenge such decisions.

"The nine largest personal current account providers in the UK are already legally required to offer basic personal bank accounts to people who legally reside in the UK who do not have or are not eligible for an account. The new rules will help to ensure continued access to basic banking services for the most vulnerable.

"The legislation will support existing protections, including those which prohibit a bank from discriminating against a UK consumer based on political opinions or beliefs when accessing a payment account."

The new rules will also apply to the termination of basic personal bank accounts from and including 28th April 2026.

The news has been welcomed by financial campaigners.

Simon Youel, head of policy and advocacy at Positive Money, said: "Debanking has been affecting both individuals and small businesses up and down the country for years - it's a shame it took this happening to one extremely wealthy individual for policymakers to do something about the problem.

"Forcing banks to provide a reason for the closure, and giving customers more time to appeal, should go some way towards reducing the stress this practice puts on people.

"This should be the first in a long line of measures to improve financial inclusion in the UK, such as measures to make sure businesses accept cash, and to increase the presence of banking hubs in areas that have been left without any branches."