Barclays anounces 600 new jobs in IFSD

07 Sep 2010

600 jobs will be created in Glasgow when Barclays creates a global services hub to support the investment banking division, Barclays Capital, and wealth management division Barclays Wealth.

Confirmation of 600 new jobs at Barclays has been welcomed warmly by the partners behind Glasgow's International Financial Services District (IFSD).

The expansion  is supported by Government cash of £6.6 million in Regional Selective Assistance linked to the company meeting conditions that could see the number of people it employs in Scotland rise to more than 2000.

Commenting on behalf of the IFSD Partnership, Councillor Gordon Matheson, Leader, Glasgow City Council said,

"This is fantastic news for the city of Glasgow, especially in these times of global economic uncertainty.  Barclays' decision to substantially expand its presence in Glasgow is testament to the availability and quality of the people it has employed here over a number of years and we are particularly pleased that this latest move will expand the company's workforce in the city to over 2,000 people".

"It also underlines Glasgow's status as a major UK centre for the financial services sector and shows how successfully the city can compete for blue chip inward investment, through a combination of quality skills and a great business environment".

"The success of the IFSD to date has been delivered through a close working relationship between the public and private sectors and this will continue in the months and years ahead, as we work to create the right infrastructure and environment, with the right support mechanisms, for employers in the city."

"Despite the global economic challenges of the past two years, Glasgow's track record in attracting and retaining financial services jobs has been good and, based on current enquiries, we are hopeful of securing more new financial services jobs for the city in the near future."

The Scottish Government would confirm only that the number of new jobs would be "substantial", saying: "The announcement will be another positive boost to Scotland's financial services industry, which employs approximately 95,000 people and accounts for around 8% of the country's GDP."

Although it is understood that initial recruitment will be for about 350 posts, Mr Salmond will say that grants will be made available for the creation of up to 600 posts at the new hub, which will make Glasgow a key centre for Barclays.

The announcement will be another positive boost to Scotland's financial services industry
The Scottish Government

The expansion is seen as a success for the work of the Financial Services Advisory Board. Comprising senior industry figures, trade unions, the enterprise network and Government, it has been working to create and protect jobs in the wake of the credit crunch and banking collapse.

Mr Salmond will meet Ian Axe, head of operations at Barclays Capital and Barclays Wealth, and the head of Barclays Stockbrokers, Des Byrne. Also present will be Anne MacColl, interim chief executive of Scottish Development International, which works with Scottish Enterprise to attract global business to Scotland.

Scottish Enterprise administers Regional Selective Assistance, which is paid out to companies in tranches as they meet targets for job creation and capital investment. The 600 new jobs would bring Barclays staffing in Scotland to more than 2000, helping offset the effects of the downturn.

The last two years have been a rollercoaster for the sector, usually involving big job losses followed by news of fewer new posts.

The RBS collapse and take-over by the taxpayer saw some 1300 jobs go in Scotland, although 200 new posts were created last week at the expense of a further retrenchment in England and the loss of some 3500 jobs there. Two weeks ago its insurance division DirectLine announced 440 job losses in Glasgow.

The HBOS failure and rescue by Lloyds TSB has seen 1000 jobs go in Scotland, while last week Standard Life announced the loss of 480 posts in Edinburgh. There have also been rumours, denied by the company, that JP Morgan is about to shed jobs.

Today's announcement comes amid annual results from Scottish Development International claiming that its promotional work has been instrumental in generating more than £500 million of inward investment.

Ms MacColl said: "We have hit our targets and are encouraged by the range of new investment projects we've helped to secure during the last year, such as those by Skykon, GlaxoSmithKline, Ryanair, Tesco Personal Finance and Stena. This type of investment has secured over 5500 planned jobs for Scotland and shows that Scotland remains attractive to investors across a wide range of sectors."

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