MSPs join fight to save HBOS

Scottish MPs are supporting the Merger Action Group in its efforts to block the takeover of HBOS by Lloyds TSB, citing a threat to competition.

MAG has lodged an application with the Competition Appeal Tribunal that brands the decision to allow the merger as unlawful.

A joint statement from members of the Scottish Parliament Alex Neil, Tavish Scott and Margo Mac-Donald says: “We call for the tribunal to hold its hearing in Edinburgh. HBOS is a Scottish bank and the Office of Fair Trading report made it clear that Scottish business is most at risk from the proposed merger with Lloyds.”

MAG’s challenge is set to be lodged today.

Jim Spowart, founder of Intelligent Finance, says that if the merger goes ahead it could threaten the foundations of the union between Scotland and England.

Speaking on Channel 4 News last Friday, Spowart said: “It will take 18 months to two years to unravel should the merger go ahead. Redundancies will be quite large and Scotland will be seriously hit by the merger. This is a definitive moment for the union.”