21 November 2025
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.
Andrew Goodacre, CEO of Bira, said: "For a long time we have been warning against the wholesale closure of banks in regional towns and rural locations. Banks continue to make billions on the back of high bank charges for businesses and yet fail to support them when it is really needed.
"From a wider economic perspective, the GDP in the UK is falling and these types of negative changes to the high streets are not going to help."
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.
From Banking Hubs to offical advice on spoting counterfeits - bookmark Bira's finance hub
What happens if and when the last bank in the high street closes? Check out the finance hub for our full explainer on what Banking Hubs are and how they can be a high street lifeline for those that need crucial in-person banking services. You can also keep up with the latest news and resources on what's important for your indepedent retail business when it comes to finance.
Image credit: Nicola/stock.adobe.com
Latest News
Read more-
High street crisis deepens as historic Falmouth retailer enters consultation over closure
Bira calls for urgent government action as iconic Trago Mills store, which has served the community since the mid-1970s, faces uncertain future.
-
National campaign to protect shop workers from violence and abuse backed by Bira
Shop workers across Britain are facing an escalating crisis of violence and abuse, with violent attacks doubling since 2022.
-
Independent retailers urge Chancellor - Boost business confidence or risk killing growth before it starts
Britain's independent retailers are calling on Chancellor Rachel Reeves to use the autumn budget to restore business confidence.
-
Bira launches 2025 Love Your High Street Week to celebrate and support independent retailers
Bira has launched its third Love Your High Street Week campaign, urging shoppers across the UK to support their local independent businesses.