Fears city's high earners will go south

Edinburgh must brace itself for an exodus of high earners in the wake of the banking crisis, senior business figures warned today.

The demise of HBOS, its takeover by Lloyds Banking Group and the problems of the Royal Bank of Scotland have damaged the Capital as a financial centre and threaten a knock-on effect on every part of the city's economy, including the housing market, they say.

Alistair Dickson, Scotland's most successful corporate lawyer, said: "We have still got to feel the effects of HBOS's move south. In the long run, I am worried about the future of Edinburgh as a city."

The fear is that as high-level decision-making in the banks moves south, the work for lawyers, accountants and others will also transfer to London.

Former RBS boss Sir George Mathewson said: "Edinburgh's done very well in recent years but it's certainly at risk."