Exclusive: Bailed-out Lloyds Bank spends thousands on ‘private party’ at Leeds nightspot

Lloyds Banking Group, which has been shedding tens of thousands of jobs, has arranged the event – with a free bar – for around 300 insurance division managers, consultants and contractors.

The party, which is taking place at the Loft Bar tonight has been severely criticised by staff unions.

Lloyds was unwilling to discuss the details of the party but a spokeswoman denied suggestions it would be paying for travel or overnight accommodation for some guests.

One Lloyds’ worker, who did not wish to be named, described the spending as “insulting” given the level of funding from the taxpayer and the scale of job losses.

Unions representing staff whose jobs have been either lost or remain under threat last night attacked the spending and said it indicated the bank was still indulging in a culture of excess despite the financial crisis and at multi-billion pound bailout.

David Fleming, national officer for Unite, said: “While 150,000 jobs have be lost across the financial services sector since the start of the crisis it is apparent that it is business as usual for the greedy bankers at the top of the finance institutions. The behaviour and culture at the banks where this crisis was born remains unchanged.”

Lloyds received an emergency injection of £20bn from the public purse in 2008 and is currently just over 40 per cent state-owned.

The bank posted a loss of over £3bn for the first six months of this year and is in the process of shedding 15,000 jobs following on from the 28,000 lost through the merger with HBOS in 2008.

A spokeswoman for Lloyds said: “We do occasionally host recognition events for colleagues but always ensure that these are appropriate and costs are kept to a minimum.”