ANGUS COUNCIL is to contact HBOS and the government to express its concern that a merger of the bank with rival Lloyds TSB could lead to job losses in the county.

Councillors voted through an amended motion to that effect after Monifieth and Sidlaw councillor Rob Murray brought it before a full council meeting.

The motion was made after the council received a reply from Lloyds TSB answering questions over the future of HBOS after any merger.

The company confirmed that it will continue to have an “established presence in Scotland,” will continue to use the Mound as its Scottish HQ, will hold its AGM in Scotland and will continue with production of Bank of Scotland notes.

In the letter, Lloyds TSB’s director of public policy and integration Rosa Wilkinson said, “It is inevitable that any agreement of this kind will prompt questions about the wider branding strategy and how the footprint of branches and offices of the two organisations will be affected.”

And while some councillors were happy with the answers they received, it was agreed that deep concern remained.

“I think Angus Council needs to give a clear message that we have serious concerns that there could be towns with no banks left in them,” said Mr Murray, after proposing that the council reply to express its anxiety.

Councillor David May said, “Although I am pleased to see that if the takeover goes ahead the new group will continue to have an established presence in Edinburgh at the Mound, and continue to print bank notes, I still believe there are huge concerns.

“I have concerns for Angus banking customers as competition will be less, and I have real worries for staff in Angus as most of our burghs have both an HBOS branch and a Lloyds TSB branch.”

The council voted through an amended version of Mr Murray’s original motion. In it they express concern “that the proposed merger will lead to job losses in Scotland both nationally and locally.”

Points expressing “disappointment at the response received” and concern that the merger “does not reflect the views expressed in recent press statements by a cross party group of MSPs” were dropped.