Independent retailers condemn bank closures in rural areas

The wholesale closure of bank branches in regional towns and rural locations has been condemned by Bira, with the association warning that the closures are having a devastating impact on small businesses.

Bira said banking was a crucial high street service for small businesses, with members from around the country contacting the association about the negative impact of closures.

Bira says the Falmouth closure is part of a wider pattern of high street decline. In recent years, Falmouth has seen the departure of many independent and national businesses including M&S, Poundland, Wilko and, more recently, Anns Cottage.

The association highlighted the situation in Cornwall, where Lloyds Bank has closed or announced the closure of dozens of branches, leaving just one in Truro to serve the entire county by the end of 2026. The closure of the Penzance branch in January will leave over 33,000 customers without a local branch, with the nearest alternative almost 40 miles away.

Sue Calvert, director of Alfred Smith and Son in Penzance, a furniture retailer which has banked with Lloyds for over 100 years, said: "For me, Lloyds and all the other banks in the town represent the root system of our economy in Penzance. Face-to-face banking is essential to maintain and keep customers safe."

Bira is calling for a review of the rules governing bank closures, more notice to businesses before closures take effect, and greater support to help firms adjust to the loss of local banking services. The association also wants to see more banking hubs established to replace closed branches.

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