Lloyds Banking Group has announced plans to shutter an additional 55 bank branches across the UK, bringing the total number of closures planned by 2026 to nearly 300.

The latest round of closures, set to begin in the new year, will affect Halifax, Bank of Scotland, and Lloyds-branded branches in various locations, including Surbiton, Port Talbot, Burgess Hill, and Didcot.

The move is part of a broader corporate restructuring aimed at reducing costs and encouraging customers to embrace digital banking services. Lloyds reported a significant 55 per cent decline in transactions at the affected branches over the past five years, while usage of its mobile banking app has seen substantial growth.

Once all previously announced closures are completed, Lloyds Banking Group will maintain a network of 892 branches, comprising 447 Lloyds Bank sites, 341 Halifax-branded branches, and 104 Bank of Scotland locations.

The banking group has assured that communities affected by the closures will still have access to cash services. A Lloyds spokesperson stated, "All communities impacted by the 55 branch closures are within reasonable distances to services such as the Post Office or a free-to-use ATM."

Ged Nichols, general secretary of the Accord union representing Lloyds staff, emphasised the broader role of bank branches in communities. He commented, "We do think that the ongoing programme of bank branch closures – not just by Lloyds – should be thought about in terms of how their services can potentially help to bridge the digital divide."

The announcement comes as UK retail bank leaders met with City minister Tulip Siddiq on Thursday, agreeing to open 350 banking hubs by the end of parliament to offset branch closures. These hubs will allow customers to perform various banking tasks regardless of their primary lender.

Siddiq expressed optimism about the initiative, saying, "Banking hubs are a lifeline for local communities that have lost their final bank branch. I'm confident that the banks will deliver on the commitment made today, as well as take a more active approach to meeting the needs of local communities."

Despite the closures, Lloyds Banking Group has stated that no job cuts are expected, with affected staff being offered alternative roles, including positions at other branches or in online and telephone banking services.

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