SNP will vote to block HBOS takeover

Published on Wednesday 22 October 2008 11:04

MPs from the Scottish National Party will today try to block the proposed takeover of HBOS in a Commons vote.

The party last night secured a vote on the order which would give the green light to the merger with Lloyds TSB by setting aside competition law.

Echoing The Scotsman's position on the issue, the SNP say questions remain unanswered about the takeover.

First Minister Alex Salmond told the SNP conference on Sunday that the 37 billion capital injection for three of Britain's biggest banks had thrown up the question of whether this funding was available to Lloyds TSB and HBOS separately.

"Before they put our money into this bail-out, we want to be sure that it is in the public interest and in the interests of jobs and decision-making in Scotland," he said.

But HBOS has said the deal with Lloyds TSB was in the best interests of all involved.

SNP treasury spokesman Stewart Hosie said it was "necessary and appropriate" for MPs to vote against the legislation.

"It would be inappropriate for this measure to go through on the nod at this stage when so many important questions remain unanswered.

He said: "It is vital that the cost of any takeover is identified – the cost to consumers and business from a lack of competition, and the cost in terms of lost jobs – before a proper assessment can be made about the Scottish national interest, and before any takeover measures can be determined."