Lloyds Banking Group still considering leaving Scotland despite No vote in independence referendum

Lloyds Banking Group is still considering leaving Scotland despite the No vote in Thursday’s referendum on independence.



While Royal Bank of Scotland said it had shelved plans to change its official domicile to England after the ballot, Lloyds did not rule out pressing ahead with a move. Instead it pointedly stated it would keep a ‘significant presence in Scotland’.



One source said Lloyds would continue to consider the issue as Westminster and Holyrood hammer out the terms of increased devolution to Scotland.

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On the move? Lloyds is registered in Edinburgh and holds its annual general meetings in Scotland

Lloyds is registered in Edinburgh and holds its annual general meetings in Scotland. But in practice it has long been run from offices in London.



It said before the referendum vote that it would shift its legal home to London – a move expected to cost it hundreds of millions of pounds.

Although Lloyds Banking Group would move its official home to London, it would leave its subsidiaries Bank of Scotland and Scottish Widows in Scotland.



The expansion of devolution could mean that Scotland will end up with a different tax rate or tax regime.



In addition, Lloyds is likely to have to make sweeping changes to its legal structure soon as a result of new rules requiring banks to split up their retail and investment arms.



Lloyds chief executive Antonio Horta-Osorio is in the middle of a strategic review, likely to be revealed at the end of October or early November. It is understood the legal move will not be considered as part of that review, but it may become an issue in the New Year when the devolution plans become clearer.



The departure of Lloyds would represent a symbolic blow to Edinburgh as a financial centre.



Five of Scotland’s major institutions – RBS, Lloyds, Tesco Bank, Standard Life and Aegon – had threat-

ened to move either their banking licences or their operations to England if Scotland voted for independence.



The No vote has removed many of the issues Standard Life and Aegon were facing. There had been fears that long-term savings products would be denominated in a different currency and would be held in companies potentially outside the EU and beyond the reach of UK regulations.



Business leaders have been relieved by the No vote amid fears that independence would have caused huge upheaval.

