With Lloyds announcing cuts to staff, Vince Cable has requested a meeting with the head of Lloyds Banking Group. 1,300 jobs are being shaved off, but the Business Secretary is particularly concerned about the 560 going from the commercial banking division. There are fears that this could harm the dealings Lloyds have with their small businesses.
Cable has contacted António Horta-Osório, the Group Chief Executive of Lloyds, after the cuts to the banking group’s small business relationship managers. Half of them are being made redundant due to a supposed long-running strategic review.
This also comes as Lawrence Tomlinson, an advisor to Cable and entrepreneur-in-residence, has attacked the Royal Bank of Scotland for acting like a “vampire” and bleeding companies of their cash.
For the most part, bailed-out Lloyds has missed out on criticism on their small business lending processes and credit control support, with RBS taking most of the flak. Now though, the Business Secretary has noted his disappointment over the planned sacking of relationship managers.
“I am very surprised and disappointed to see the news that Lloyds has announced cuts that strike at the heart of these important commitments and put its focus on small businesses at risk.”
Lloyds have agreed to meet with Cable and said they “…are committed to the relationship model and are the only bank to increase lending to small businesses since the new management team arrived.”