Lloyds Bank is trialling 10% cashback for locals in two UK cities in a bid to boost high street spending. The banking giant is offering eligible Lloyds customers money back when they spend with independent businesses that bank with the lender.
People with a personal bank account and a registered address in Exeter or York can take part in the scheme, which Lloyds said aims to help high streets. Ruchir Rodrigues, managing director of business and innovation banking at Lloyds, said independent businesses are the heart of thriving communities. He said the trial would provide Lloyds' business customers with a way to connect with shoppers who have accounts with the bank.
How the cashback scheme works
Mr Rodrigues said: "We're excited to learn from the launch in York and Exeter as we explore whether the offer could support more communities across the UK."
Lloyds customers in York can get 10% cashback at Dusk Bar, Durham Ox and Chris Sellers Tyres. Eligible shoppers in Exeter can take advantage of the offer at The Holt, Oriel's, The Milky Way Adventure Park, The Marine in Dawlish, Bicton Botanical Gardens, World of Country Life and Kit Heath.
Offers should appear in the Rewards section of Lloyds' app, depending on the postcode linked to the customer's account. After activating the perk, Lloyds customers need to pay with a credit or debit card issued by the bank. The cashback is then paid directly into their current account.
Bank branch closures continue
Lloyds announced the trial on Friday (October 16), on the same day the IMF said Britain should cut spending rather than raise taxes on banks. Chancellor John Healey is reportedly considering raising the tax on bank profits at the Budget, as a way of dealing with the Government’s spending challenges.
Paul Wilkinson, director of rewards and loyalty at the bank, said the cashback would help customers' money go further and encourage them to find out more about what their local area has to offer.
Lloyds' effort comes as the bank continues to close high street branches in towns and cities across the UK. Lloyds Banking Group, which includes Lloyds Bank, Bank of Scotland and Halifax, is closing 232 branches this year alone. After all the planned closures have been completed, the Group will have 610 branches left. Lloyds insists the move to online banking means some bricks and mortar outlets are no longer viable.
High street decline and government measures
Lloyds is not alone in shutting branches. Figures from the British Banking Association and the Office for National Statistics show that in 1986 there were 21,643 bank and building society branches in Britain, compared with 6,870 in 2024. Critics say the closures have contributed to a decline in high street footfall, affecting other businesses and turning some areas into so-called banking "deserts".
Prime Minister Andy Burnham pledged in August to save Britain's high streets, which he said have been hollowed out by the spread of vape shops, betting shops and dodgy businesses linked to organised crime. Measures aimed at "saving" high streets announced by ministers include revoking the "aim to permit" rule, which limits the ability of local authorities to refuse new betting and slot machine shops. Vape shops would also require planning permission under the proposals.
