Lloyds Banking Group to close 95 branches across UK in phased programme to 2027

Lloyds Banking Group has mapped out a fresh wave of high-street exits, committing to shut 95 locations across its Lloyds, Halifax and Bank of Scotland banners in a phased plan running from May 2026 through March 2027. This announcement supplements an earlier tranche of 49 planned closures for later this year and builds on measures introduced around a year ago, reflecting a structural pivot away from branch-based servicing. The bank attributes the rationalisation to rising digital adoption: a large proportion of its customer base now relies primarily on mobile and online tools, reducing footfall and reshaping how services are delivered. Operationally, the closures will concentrate physical presence in higher-traffic sites while extending support through digital channels and community-based alternatives, such as outreach bankers and third-party access points. Management has said staff at affected branches will be offered alternative roles inside the organisation, but did not disclose the number of employees impacted, leaving workforce effects uncertain. For customers who still depend on in-person banking, the retraction of branches raises practical concerns about access, particularly in smaller towns and certain urban neighbourhoods where alternatives may be sparse. From a cost and efficiency perspective, fewer branches reduce property and operating expenses and align the network with current usage patterns, but they also risk reputational costs and regulatory scrutiny over financial inclusion. Financially, the change is likely to trim running costs and free capital for digital investments and mortgage lending — Lloyds is the UK's largest mortgage provider — yet it may also push a subset of customers toward competitors or alternative payment and cash services. Local economies that lose a branch can experience subtle secondary effects: reduced foot traffic for nearby businesses and inconvenience for cash-dependent customers and small firms. The bank's mix of digital offerings and local service options is intended to blunt these impacts, but effectiveness will vary by community. Regulators and local stakeholders will watch implementation to ensure vulnerable groups retain access to essential banking functions. Ultimately, this phase is another step in a long-term transition of UK retail banking infrastructure away from the high street and toward digital-first delivery, with trade-offs between cost savings and service coverage that will shape customer experience and regional banking access over the next several years.