Call for action as bank's city IT staff face redundancy

A CITY MSP today urged Scottish and UK ministers to intervene to save hundreds of jobs due to be axed in the Capital by Lloyds Banking Group.

More than 350 IT posts in and around Edinburgh will go as part of a programme of 4500 job cuts nationwide announced by the banking giant, which is 41 per cent owned by the UK government.

Edinburgh North & Leith Labour MSP Malcolm Chisholm said: "I hope Scottish ministers will make every effort to save these jobs, and the UK Government should be applying direct pressure in terms of the stake they hold in the bank."

The latest round of job losses comes just months after Barclays announced a cut of more than 200 jobs in the city following its takeover of Standard Life Bank, and RBS unveiled plans for hundreds of IT redundancies here.

Mr Chisholm said: "The loss of hundreds more posts in the sector could have a worrying knock-on effect as banking and finance jobs are vital for the Capital's economy."

Lloyds, which took over HBOS at the height of the banking crisis, said 200 permanent IT posts in Edinburgh would be axed along with 130 contract posts. The main base affected is Sighthill.

The Lloyds Trade Union said a further 35 jobs were due to go in Fife and West Lothian.

The union claimed the Capital was losing a bigger proportion of its permanent IT posts - 35 per cent - than any other Lloyds centre.

The announcement brings the total number of job losses in Lloyds across the UK to over 20,000 since last year.

A company spokesman said the bank hoped to achieve as many as possible of the job losses through natural wastage and voluntary redundancy.