Bank Branch Closures Accelerate UK High Street Decline, PwC Says

Banks closing branches across Britain are fueling the decline of the country’s high streets, a report by advisory firm PwC found.

Almost 1,000 bank branches closed in the last two years on a net basis, forcing customers to travel further or use online services. That is having a knock-on effect on British shopping streets, with 10 retail or hospitality outlets closing on a net basis every day in 2024, the survey by Green Street for PwC showed.

“One of the main reasons that high streets are losing footfall is because there are far fewer banks,” Kien Tan, senior retail adviser at PwC, said by phone. “The number of banks has halved in 10 years. That’s massive.”

Banco Santander SA said this week it will close 95 branches in the UK, putting about 750 employees at risk of redundancy. Lloyds Banking Group Plc and NatWest Group Plc have also closed outlets, as traditional banks with costly real estate footprints and staffing needs come under pressure from more online-focused financial services rivals including Monzo Bank Ltd. and Revolut Ltd.

The trend has been going on for some time, with net closures of 1,795 in 2021 and 2022 combined. The data include building societies, insurance agents, bureaux de change and credit unions.

The struggles in the British retail sector are becoming a major political problem for the government, especially after Chancellor of the Exchequer Rachel Reeves imposed higher costs on companies in her revenue-raising budget. Opposition parties accused her of hurting business and consumer confidence, which has undermined the governing Labour Party’s promise to spur growth.

Overall, there were 12,804 closures of chain outlets across British shopping destinations in 2024, according to the PwC report.

While that was an improvement on 2023, PwC found, the consultancy expects closures this year as retailers respond to higher national insurance contributions — a payroll levy — which kick in next month.

“Retailers continue to face significant challenges in 2025,” Zelf Hussain, restructuring partner at PwC, said in a statement. “With substantial payroll cost increases and higher business rates taking effect in April, profit margins will remain under pressure, further straining high street retailers.” 

Pubs and pharmacies were also among the worst-hit categories last year. Boots said in 2023 the drug store chain would close 300 stores in the UK, while Lloyds Pharmacy confirmed its departure from the high street later that year.

Those closures also have political implications, as ministers try to shift more services to pharmacies to help the struggling National Health Service.

The report published Thursday tracked more than 200,000 chain outlets in 3,500 locations across Great Britain to show the changing character of high streets, shopping centers and retail parks. It doesn’t include independent stores.

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