Cathy Jamieson MP, Labour’s Shadow Treasury Minister, responding to the announcement at Lloyds Banking Group, said:

“We need to restore the banks to profitability, but also protect local banking services and guard against financial exclusion.

“Lloyds’s financial position would be much healthier were it not for the payouts and administration costs arising from mis-selling scandals. Frontline staff will feel that they are being made to bear the costs of mismanagement that took place at a senior level - especially given that bonuses at Lloyds increased by eight per cent over the past year.

“On banking more widely, Labour wants reforms that deliver more competition as well as a tax on bank bonuses to pay for a jobs programme for young people.”