Savage blow to bank staff

Anyone who blinked would have missed that rare piece of economic good news, and it will offer no consolation to more than 1,000 workers in Leeds, Harrogate and Bradford who have become the latest to suffer the consequences of the financial sector's wild profligacy.

RBS said that 3,500 posts would go as it closes 12 of its

administration centres nationwide, meaning Yorkshire has been forced to absorb a far greater share of the pain than any other region.

The move comes on top of the bank's 9,000 job cuts announced last year.

And to rub salt into the deep wound of the region's economy, union bosses said 500 jobs are to be moved abroad.

If correct, such a decision would represent an appalling slap in the face to the public who rescued RBS from collapse.

It is clear the part-nationalised bank – 83 per cent owned by the taxpayer – has to make itself profitable again in order for the colossal investment spent by the previous government to be repaid.

Indeed, its spokesman was quick to state yesterday that such drastic job cuts were "the most difficult part of our work to rebuild RBS and repay taxpayers for their support".

Yet the bank must look at the bigger picture – it is no good cutting jobs and shifting staff abroad to save money to repay the taxpayer, if the action itself creates a greater burden on the public purse as redundant workers stop paying tax and are forced to draw on state support as they battle for the few jobs that are available.

As long as RBS is owned by the public, its bosses must show the work being carried out will benefit the wider economy.

Earlier this year, it showed little regard for this when it emerged that, as small businesses up and down the country cried out for the credit they needed to get the economy flowing again, the bank loaned hundreds of millions of pounds through a complex consortium to Kraft, the American food giant, to help its bid to take over Cadbury, a move that cost hundreds more jobs.

While job cuts, foreign investments and moving operations abroad may help the banks to achieve their objective of balancing the books, bosses must never forget that public, and social, responsibility is the price they have to pay until they no longer rely on state support.