Iain Smith, local Liberal Democrat MSP for North East Fife and Convener of the Scottish Parliament's Economy Committee, has written to the senior managers for Lloyds TSB and Halifax Bank of Scotland branches in the area seeking assurances about the future of local branches in his constituency.

Speculation is rife about possible job losses and branch closures across Scotland following the emergency merger between HBOS and Lloyds TSB, announced last week. Branch closures and redundancies will mean some local businesses losing their banking contacts.

The leader of the Liberal Democrats in Scotland, Tavish Scott and Finance spokesperson Jeremy Purvis, put these concerns directly to Archie Kane, a board member for Lloyds TSB at a summit in Edinburgh this week.

In his letter, Iain Smith wrote:

"Across North East Fife there are a number of branches of the two banks. People employed by these branches are, quite understandably, anxious about their future. I am writing for assurances about the future of the employees' jobs, but also for clarification about any branch closures. I am also concerned about the impact that any branch closures will have on local businesses, many of whom will have built up close contact with banking representatives.

"Leader of the Liberal Democrats in Scotland, Tavish Scott and Finance spokesperson Jeremy Purvis put these concerns directly to Archie Kane, a board member for Lloyds TSB, at a summit in Edinburgh this week. Mr Purvis will also meet with the Chief Executive of HBOS later this week to discuss the same concerns.

"In addition to this, there is growing concern about the competitiveness underpinning this deal, in particular, the risk that cost cutting, however dressed up, will affect the opening hours of your branches in some of the smaller towns and villages.

"Early reassurance on these issues is essential. At a time when the Post Office is already decimating its coverage in areas like North East Fife, we can ill afford further cutbacks to services and jobs in the region."