Lloyds has announced plans to close more than 100 branches just a day after the bank’s boss met Keir Starmer at a City summit about reviving the economy.
In a blow to the Prime Minister and Chancellor Rachel Reeves, the lender, which also owns Halifax and Bank of Scotland, yesterday said it will shut 136 sites as it accelerates cost-cutting plans.
The announcement comes after Sir Keir and Ms Reeves on Tuesday told top City bosses including Lloyds chief executive Charlie Nunn that ‘Britain is back and open for business’.
Tory shadow business secretary Andrew Griffith said: ‘Yesterday Lloyds’ CEO sat down to breakfast with the Prime Minister and Chancellor.
’24 hours later Lloyds announce likely job losses and the closure of almost 140 branches. As votes of confidence go, might need a bit of work.’
Banks have accelerated the closure of high street branches as more customers manage their money online. Consumer group Which? estimated that more than 6,200 sites have shut in the last decade.
The lender will axe 61 Lloyds, 61 Halifax and 14 Bank of Scotland sites between May this year and March 2026.
That will leave 386 Lloyds branches, 281 Halifax branches and just 90 Bank of Scotland across the country.
Lloyds chief executive Charlie Nunn attends a breakfast meeting with Sir Keir Starmer
A general view of the exterior of a branch of the Lloyds bank chain on January 29
Prime Minister Sir Keir Starmer during an interview following a business meeting with top executive
It comes weeks after the FTSE 100 firm said it would allow customers of Lloyds, Halifax and Bank of Scotland to use branches across any of its brands, fuelling fears that closures were imminent.
Workers at the affected branches will be offered jobs elsewhere in the company, Lloyds said.
It blamed the decision to shut the sites on customers shifting away from banking in person to using mobile services.
Transactions across the branches earmarked for closure fell by an average of 48 per cent over the past five years, Lloyds said.
A Lloyds spokesman said: ‘Over 20million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking.’
Chancellor Rachel Reeves during the business meeting with Prime Minister Sir Keir Starmer and top executives
She said customers can use telephone banking, visit a community banker, a Post Office or Banking Hub or use any Halifax, Lloyds or Bank of Scotland branch.
The group said it is making ‘good progress’ with a transformation plan it launched in 2022.
Earlier this month, the company revealed plans to shut offices in Dunfermline, Scotland and in Liverpool, putting more than 1,000 jobs at risk.
