Bank closures killing off high streets in market towns

MARKET town high streets are being killed off by bank branch closures, according to research.

A survey released by Nottingham Building Society found that 46 per cent of shop owners blamed the loss of a local bank branch in the past three years for negatively affecting their business, while 24 per cent said it contributed to them going out of business within the past five years.

Small business owners are suffering as a result of lower footfall, with around 36 per cent of consumers saying they would make fewer visits to their town or village once their local bank branch closed. Around 40 per cent said they would make at least three fewer visits a month as a result.

Shop owners in areas affected by branch closures estimated that their annual revenue dropped by an average of 20 per cent after the bank closed.

The survey also found that 26 per cent were looking at moving their businesses to a new area or smaller premises, while 31 per cent said they were considering shutting their stores and operating solely online. It noted that 15 per cent were considering job cuts.

Gary Womersley, the head of branch network for Nottingham Building Society, said: “Financial institutions play a major role in local high streets drawing customers to shops and boosting sales and business.

“This is particularly true in market towns, where much of our focus is placed. Sadly, there are now as many as 1,500 towns in the UK that used to have branches but no longer do.”

A government report released earlier this year showed that 1,270 bank branches were closed between 2014 and 2017, with 650 cut last year alone.

Further closures have since been announced by the Royal Bank of Scotland, which has confirmed it will close 162 branches across England and Wales. Lloyds earlier this year announced plans to shutter 49 branches between July and October.