Lloyds plans to axe 15,000 jobs - and Scots could be hit

LLOYDS Banking Group has refused to rule out job losses in Scotland ahead of an announcement expected today of about 15,000 redundancies.

The taxpayer-funded lender is reportedly looking at the job losses, with a statement due to be announced by the bank to the Stock Exchange today.

Lloyds employs about 20,000 workers in Scotland, with its Scottish Widows insurance arm and the Bank of Scotland being key parts of its business.

The speculations about job losses came as Lloyds chief executive Antnio Horta-Osrio was handed an honorary degree by the University of Edinburgh.

The bank, which has 120,000 people on its UK-wide payroll. refused to rule out jobs losses in Scotland, when asked about the issue by The Scotsman yesterday.

The acquisition of HBOS in September 2008 ultimately forced the lender to seek a 17bn state rescue and sparked a wave of job cuts.

About 27,000 posts have already been cut in the past two years, including more than 1,000 in Scotland.

Now Lloyds wants to slash another 1 billion a year from its cost base, on top of the targeted 2bn a year savings by the end of the year.

SNP MSP John Wilson, the deputy convenor of Holyrood's economy committee, called on the bank to protect the jobs of Scottish workers, particularly as the group had received taxpayer support following the banking collapse in 2008.

Mr Wilson said: "I'm extremely disappointed to hear about the possibility of job losses in Scotland, given that other banking groups have said things are looking up. This will create fear and anxiety among the Lloyds workforce in Scotland in the weeks and months ahead.

"Lloyds must provide clear evidence and justification for any decisions. Profits should not come before the future security of individual employment in Scotland.

"Given the decision by the University of Edinburgh to award an honorary degree to the Lloyds chief executive, it once again raises the issue of academic awards to individuals whose track record is questionable."

Lloyds yesterday refused to comment on the reports about job losses, but it is understood the group is looking to target office workers and middle management.

About 10 per cent of any job losses are likely to involve compulsory redundancies.

However, Lothians Labour MSP Sarah Boyack called on Lloyds to protect jobs in the banking sector in Scotland, after previous cutbacks.

She said: "After the job losses experienced since the banking crisis, the impact is still being felt in Edinburgh and across the Lothians.

"I sincerely hope that there will not be substantial job losses. It's vital that decision-making functions and the headquarters of the group remain in Edinburgh. Given that the chief executive accepted an honorary degree from the University of Edinburgh, there a real obligation on him to be committed to the city."

Mr Horta-Osrio, the Portuguese-born banker who took the top post at Lloyds in March after being poached from rival Santander, is understood to be planning to trim the bank's overseas interests but will pledge to revive the Halifax brand and keep Scottish Widows.

The University of Edinburgh declined to comment on the degree awarded to Mr Horta- Osrio.