Coutts is facing growing criticism over its decision to close Nigel Farage’s bank account after senior Conservative MPs questioned its motivations in the House of Commons.

Former cabinet ministers David Davis and Sir Jacob Rees-Mogg both raised the issue at Prime Minister’s Questions on Wednesday afternoon.

Sir Jacob called for an inquiry and asked Rishi Sunak if he shared his “unease” that the bank “should close the account of a senior opposition politician”.

Mr Davis claimed Coutts’ actions amounted to “political discrimination”, and asked: “Can he require every bank with a British banking licence to inform the Treasury of all the accounts shut down for non-commercial reasons?”

In response, the prime minister said it “wouldn’t be right if financial services were being denied to anyone exercising their right to lawful free speech” and that the government intended to “crack down on this practice”.

Rishi Sunak blames doctors and nurses demanding more pay for waiting times – politics latest

Mr Sunak said the government’s Financial Services and Markets Act puts in place “new measures to ensure that politically exposed persons are being treated in an appropriate and proportionate manner”.

Banks face Treasury clampdown in Farage account closure row

What are PEPs and are banks allowed to close their accounts?

Nigel Farage claims Coutts bank account was shut down over his ‘values’

The former cabinet ministers joined earlier criticism from Home Secretary Suella Braverman – who said the “scandal” exposes the “sinister nature of much of the Diversity, Equity & Inclusion industry” – and Grant Shapps, who urged the Financial Conduct Authority to investigate.

Please use Chrome browser for a more accessible video player

It comes as Coutts has found itself at the centre of a political controversy after Mr Farage claimed his bank account was closed down after Coutts decided his views “do not align with our values”.

The former UKIP and Brexit Party leader said last month that the exclusive bank – used by the Royal Family – had written to him to tell him both his personal and business accounts were being closed, without providing an explanation.

A Coutts spokesperson said decision to close accounts “are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements”.

As an outcry around the issue grows, Sky News has learnt that banks will be forced to give customers three months’ notice of account closures – and to provide a full explanation of the reasons – under reforms that could be unveiled in the coming days.

There will also be private notice question on the row in the House of Lords this afternoon, secured by former chancellor Norman Lamont.

By-elections special: Watch live coverage throughout the night on Sky News – with a special programme from midnight on Friday featuring analysis and reaction as the three results come in

Please use Chrome browser for a more accessible video player

Mr Farage claimed in a video on Twitter last week that his account was closed was because he was a “politically exposed person”, or PEP, and that closing his bank accounts was part of a plan to force him out of the UK.

But both the BBC and Financial Times reported that the bank did not want his custom as he did not have enough money in his accounts.

In an update on Tuesday evening, Mr Farage claimed he had seen a 40-page document showing that while he met the “criteria for commercial retention”, his views – ranging from his position on LGBT+ rights and his friendship with former US president Donald Trump – meant the bank wanted him to leave.

A Coutts spokesperson said decisions to close accounts “are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements”.

In an article in The Daily Telegraph, Mr Farage claimed he had never experienced “problems” with Coutts until “Brexit became a reality” and “everything changed”.

He said the report claimed he was seen as “xenophobic and racist”, repeated claims he was a fascist in his schooldays, and said his previous remarks were “distasteful and appear increasingly out of touch with wider society”.

Sky News has not seen the document.

Please use Chrome browser for a more accessible video player

It is understood that the FCA is aware of the issued raised by Mr Farage and will be monitoring the issue.

A FCA spokesperson said: “While who banks do business with is ultimately a commercial decision for them, they should treat people fairly and ensure they meet their responsibilities under equality legislation.”

A Coutts spokesperson said: “Our ability to respond is restricted by our obligations of client confidentiality. Decisions to close accounts are not taken lightly and take into account a number of factors including commercial viability, reputational considerations, and legal and regulatory requirements.

“As the client has previously confirmed, alternative banking arrangements have been offered within the wider group.”

Related posts:

Labour to vote against Priti Patel’s crime legislation ‘mess’, sparking row over women’s safety Sturgeon set for majority but Salmond unlikely to get single seat – Sky News poll ‘Rishi, David Cameron here’: Former PM’s Greensill lobbying texts to ministers revealed Commons Speaker backs allowing MPs to bring babies into debates ‘Absolute nonsense’: Lawyers question Met’s call to water down report into Downing St parties Boris Johnson offers ‘full apology’ but won’t resign over partygate fine Sunak faces backlash over lockdown criticism as claims branded ‘dangerous rubbish’ Liz Truss and Tories’ approval ratings take another hit in fresh poll Tory conference is shrouded in gloom – has Truss already sealed her own fate? | Beth Rigby Starmer defends Sue Gray as ‘woman of incredible integrity’ The rise and fall of Boris Johnson – how a bombastic political career came to a bitter end There’s no conceivable path for him to become leader again – so what is next for Boris Johnson?