100,000 finance jobs lost since Northern Rock crisis

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The Independent Online

Around 100,000 finance jobs have been lost since the start of the banking crisis three years ago and there are fears of further "significant" cuts ahead, according to a new report today.

On the third anniversary of the run on Northern Rock and the start of the banking crisis in the UK, union Unite said little had changed to improve the regulatory regime and prevent a future crisis.

Despite the "astronomical" staff cuts, the financial sector was reporting a return to profitability, it said.

National officer Rob MacGregor said: "Today marks three years since the spectacular scenes of the run on Northern Rock which sparked the events which saw a banking crisis across the UK. While 100,000 hardworking UK taxpayers have become scapegoats and lost their jobs in banks and call centres, little has changed for the banking spivs.

"Reform of the financial services industry has been too slow, too timid, and done nothing to change the culture of those at the top of the industry. Customers now see their finance choice dominated by a few large players controlled by shareholders in the market.

"While the banks cut customer service staff, investment bankers continue to extend their risky activities and the salaries and shares of these bankers continue to increase to colossal heights.

"As a result of the finance crisis the taxpayer is now having to prop up Northern Rock, Lloyds Banking Group, RBS and Bradford and Bingley, yet the banks have quickly now returned to business as usual.

"Unite is alarmed that the contraction of the finance sector is evident in both size and diversity. It is detrimental for the UK that there are fewer access points to the financial services and a reduction in the number of companies in the sector."

Lloyds Banking Group and Royal Bank of Scotland have announced 38,300 job losses since 2008, said Unite.