Capital businesses bracing themselves for jobs fallout

Published on Saturday 13 December 2008 10:49

BUSINESSES across the Capital are bracing themselves for the impact of widely expected job losses at HBOS and Lloyds TSB following the merger of the two banks.

It is forecast that up to 40,000 jobs will be cut when the new Lloyds Banking Group is created.

Edinburgh, which is home to both the HBOS headquarters and Lloyds TSB Scotland's head office, is expected to be hit hard by job losses.

The city council said today it is looking to launch further talks with bosses of the new group in a bid to secure as many jobs as possible in Edinburgh, where more than 12,000 staff are employed by the two companies.

The final stamp of approval to the Lloyds takeover was given by HBOS shareholders yesterday at a meeting in Birmingham.

The deal won overwhelming approval from 84 per cent of individual shareholders and was approved by 98 per cent of votes cast.

City leader Cllr Jenny Dawe said: "The council will work with the new organisation to retain many jobs, branches and HQ functions in Edinburgh.

"I have already met twice with those leading for Lloyds TSB on the merger and with HBOS. I have strongly advanced Edinburgh's case."

It is anticipated that job cuts could impact the whole Edinburgh economy.

Andrew Murphy, managing director of John Lewis in Edinburgh, fears the impact on the retail sector. He said:

"If it is a negative story, as predicted, I would expect it to impact on all Edinburgh businesses."

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said:

"We welcome the decision of HBOS shareholders to endorse the view taken by those of Lloyds TSB to move forward to a merger."

WHAT HAPPENS NEXT IN MERGER

Review to be launched on how the companies will be brought together.

&#149 Review of bank branches expected to take up to two years before being completed.

&#149 The Bank of Scotland brand to become the main retail brand of Lloyds Banking Group in Scotland.

&#149 Lloyds TSB name to vanish from Scottish high streets.

&#149 Bank of Scotland Corporate is set to remain in Scotland. However, its future is uncertain outside of Scotland.

&#149 The Mound to become Scottish HQ of new group – although main registered HQ will be in London.

&#149 Lloyds TSB chief executive Eric Daniels to head up new group.