Barclays Bank urged to explain closure of a Peterborough parish council's account that left it unable to pay wages

Bank bosses are being urged to explain the unexpected closure of a parish council’s account that left it unable to pay wages and service providers.

The Barclays account of Sibson-cum-Stibbington Parish Council was shut down by the bank on September 21 following lengthy correspondence with the council over a separate complaint about poor treatment.

It has meant that for more than three months the council has not been able to pay its Parish Clerk and other service providers.

The closure came during an eight month dispute between the two organisations and despite an assurance from the bank in March, says the parish council, that the account would not be closed.

The first the council knew of the closure was when it received a letter from the bank containing a cheque for the balance.

The council says it has not been able to get any explanation from the bank about why that assurance was broken.

Now the fight has been taken up by North West Cambridgeshire MP Shailesh Vara.

He has written to the bank’s chief executive and chairman demanding an explanation and the re-opening of the account.

In his letter, Mr Vara states that the ‘poor way’ in which the council has been treated is ‘deeply regrettable’ and he urges the bank to ‘consider restoring the account’.

Mr Vara said: “This is appalling treatment by Barclays bank of Sibson-cum-Stibbington Parish Council.

"This is not the way that they should be dealing with customers.

“I have had sight of the correspondence between the parish council and the bank, and it does not show Barclays in any good light at all.

“For months, there has been poor treatment of the council, culminating in the closure of their account without any explanation, despite promises to the contrary.

“I have asked the chief executive Mr Venkatakrishnan to personally look into this case and I hope that the matter will be quickly resolved with the account being opened again.”

Parish council chair Marge Beuttell said: “The sudden and unexplained closure of this account left the Parish Council unable to pay the Parish Clerk and also other service providers for over three months, which was extremely embarrassing and frustrating.”

Barclays Bank has been contacted for a response.