Santander faces backlash for charging small firms monthly fees

In recent weeks, Santander Bank has informed business customers about impending charges of £9.99 per month, set to begin from October 2025. This change affects approximately 50,000 small firms that previously held 'Business Everyday' accounts. In 2015, these accounts were marketed with a 'free forever' promise, leading to a significant backlash from business owners who feel betrayed by this shift. Several small business owners, including Mr. McGarry, expressed their frustration, suggesting that the bank's decision not only contradicts its original terms but further complicates their financial situation during a challenging economic climate. Mr. Gareth Thomas, the minister for small businesses, has reportedly expressed dismay over Santander's decision, urging the bank to reconsider its strategy. He emphasized the importance of trust between banks and small businesses, as a supportive banking environment is crucial for these enterprises to thrive. Thomas highlighted that the government, through its Small Business Plan, is committed to providing the necessary backing for small business growth and sustainability amidst changing economic circumstances. Consumer advocate Dean Dunham assessed the legal aspects of Santander's decision, noting that although the bank may technically be adhering to legal frameworks, the 'free forever' promise could still play a significant role in customer dissatisfaction. Dunham suggested that affected businesses might consider lodging complaints with the Financial Ombudsman, although this could incur further costs for them. The shift in Santander's account policy introduces an additional layer of challenge for small businesses already navigating a tough financial environment, raising concerns about loyalty and trust in bank-customer relationships. As Santander seeks to simplify its business banking offerings, it remains to be seen how this decision will impact its reputation among key stakeholders, such as small business owners who often feel overlooked in financial discussions. The bank's move away from free accounts is a pivotal moment for the sector, raising questions about the future of small business banking in the UK and the ethical obligations of financial institutions towards their customers.