Quite a few inner London stations closed in the years from 1914 onwards.
The tram competition / local people working nearer home thing reflects changes in the local population more than the same people changing what they did.
The middle class city commuters moved further out of London as the city grew, and areas became more working class - with the new residents more likely either to work nearer home, in places other than 'the City' or to use the cheaper fares on the London County Council's trams (cheap 'workman return' fares before 0800 being part of the LCC's policy.)