600 new jobs at Barclays show finance sector 'alive and kicking'

Published on Monday 6 September 2010 18:23

FIRST Minister Alex Salmond said the Scottish financial sector was "alive, kicking and looking forward to better times" as he announced that banking giant Barclays was create 600 jobs at its Glasgow office.

It plans to expand its presence in the city's financial sector, creating a new global services hub to support its investment banking and wealth management division.

In return, Barclays will receive almost 6.6 million in Regional Selective Assistance (RSA) funding from Scottish Enterprise.

The jobs will be created over the next four years, although Barclays said it had already filled or was currently recruiting 50 per cent of the posts.

It will take the number of staff employed by the bank in Glasgow to more than 2,000.

Ian Axe, head of operations at Barclays Capital and Barclays Wealth, said: "This example of collaboration between the investment banking and wealth management divisions at Barclays is an exciting development for clients, staff and potential employees in Glasgow and across Scotland."

Mr Salmond said he was "delighted" the bank had chosen Glasgow to expand its business. "It's a tribute to Barclays, and also a tribute to the quality of work that's done here, that we are able to announce this significant expansion today," he said.

"The 600 jobs being created are high value-added jobs with an average salary of 35,000. These are significant opportunities for the people of Glasgow and beyond."

Mr Salmond said the jobs had been won against "stiff international competition" and he added that the RSA grant represented a "good investment in the future of the financial district of Glasgow".

He cited the examples of investments and job creation in the district by the likes of Tesco Personal Finance, eSure and BNP Paribas during the past 12 months as proof that both the city and the Scottish financial sector as a whole were weathering the financial downturn.

"That you can make such gains against the turbulence of the financial sector is a very strong and powerful indication that there are even better things to come as the economy and financial sector moves on to a firmer footing," he said.

Scotland's financial sector employs about 95,000 people but has suffered following the near-collapse of Royal Bank of Scotland and HBOS, now part of Lloyds Banking Group, during the economic crisis.

But Owen Kelly, chief executive of Scottish Financial Enterprise, said Scotland was still attractive to financial employers.

"Barclays' expansion plans are great news for the financial services industry in Scotland," he said. "We are seeing substantial growth in the asset-servicing sector and Scotland is clearly an attractive location to base such high-quality jobs."Earlier this year, Barclaycard confirmed plans to close its Barclays Partner Finance in Glasgow, which employed about 350.

Speaking on behalf of Glasgow's International Financial Services District, Glasgow City Council leader Gordon Matheson said: "This is fantastic news for the city of Glasgow, especially in these times of global economic uncertainty.

"It also underlines Glasgow's status as a major UK centre for the financial services sector and shows how successfully the city can compete for blue-chip inward investment, through a combination of quality skills and a great business environment".