Bank Services: Business

Generally speaking, it is economically beneficial for banks to provide business bank accounts, as this provides an important source of funding for their activities, such as funding their costs in relation to providing mortgages, consumer and business credit. This is cheaper than banks having to borrow externally at higher cost.

The Government has already legislated to strengthen protections for customers. Since April 2026, banks and other providers have been required to give customers a longer notice period of at least 90 days and to provide customers with a sufficiently detailed and specific explanation before they terminate services. This will give people and businesses the time and information they need to challenge decisions or find an alternative provider.

More widely, the UK also has statutory protections to protect individuals most in need. The nine largest UK providers of personal current accounts are required by law to offer ‘basic bank accounts’ to individual customers legally resident in the UK who do not have a bank account, or who are not eligible for a bank's other accounts.

The Government does not hold data on the number of business bank accounts closed by individual firms, including a breakdown by reason for closure. Banks are not required to routinely report this information to the Government. Any such data would be held by firms themselves.

The Financial Conduct Authority (FCA) does not routinely publish firm‑level data on business bank account closures. The FCA requires firms to treat customers fairly and to communicate in a way that is clear, fair and not misleading, including complying with applicable notice requirements. The FCA supervises firms to ensure compliance with these obligations but does not prescribe exhaustive rules on when accounts must be closed. As set out in its work on payment account access and closures, it instead sets expectations for firms’ governance, fair treatment of customers and communication.

Decisions to close accounts are commercial decisions taken by individual firms, in line with their legal and regulatory obligations. Firms may close accounts for a range of legitimate reasons, including financial crime risk management and changes to risk appetite. The Government expects firms to treat customers fairly and communicate appropriately in line with existing requirements.