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Audio: Ged Nichols,
General Secretary of union Accord

"Lloyds Banking Group is committed
to working through these changes with colleagues carefully and
sensitively. The unions, Accord and Unite, were consulted before
this announcement and will continue to be consulted throughout this
process.

The Group’s preference is to use
natural turnover and to redeploy people wherever possible so it
retains their expertise and knowledge within the Group.

"Where it is necessary for
colleagues to leave the company, it will look to achieve this by
making less use of contractors and voluntary severance. Compulsory
redundancies will be a last resort.

"A range of measures have been put
in place to support colleagues through this uncertain time."

Cllr Jane Chitty, Portfolio Holder
for Strategic Development and Economic Growth at Medway
Council, said: "The precise details are not clear
but I am desperately sorry to hear of these job
losses.

"As a council we will do all we can to offer help and support
to those people affected.

"Financial services is one of our important business sectors
in Medway. I would hope that many of these people who cannot be
redeployed within the Lloyds Group will be able to find work
locally here in Medway."

Factfile

Lloyds Banking Group was formed on January, 19, 2009,
following the acquisition of HBOS and has the
biggest private shareholder base in the country

The group has more than 30 million customers andis now
the largest retail bank in the UK.

It is the UK's leading provider of current accounts,
savings, personal loans, credit cards and mortgages.

Lloyds Banking Group has 140,000 staff across the
UK

The groups main brands include; Lloyds TSB, Bank of
Scotland, Halifax, Scottish Widows, Clerical Medical and Cheltenham
& Gloucester

The job losses affect 985 full-time and part-time jobs
over the next two years. As well as the 210 jobs at Chatham, 200
jobs will be affected at Speke on Merseyside, and 340 at Chester,
while the rest will affect the national sales force spread across
the UK.

Paul Lawe, head of mortgage
operations, within Lloyds Banking Group, retail division, said:

"We fully recognise that the
closure of any of our sites is difficult news for colleagues
working there.

"We are committed to working
through the changes in Pegasus House with our colleagues carefully
and sensitively and will seek to use natural turnover and
redeployment wherever possible."

Ged Nichols, general secretary of Accord, the union representing
the largest number of former HBOS employees now working in LBG,
said: "Today’s announcement is devastating news for the workforce
and the local economy of the Medway Towns.

"These jobs are well-paid and provide good employment in an area
of the country that is already suffering from above-average
unemployment rates. Accord argued with LBG to try to preserve the
operation, but, ultimately they decided to press on with
closure.

"However, under an agreement that Accord has secured with the
bank, alternative roles will be sought for staff in other LBG
operations throughout the Medway, Dartford and North West Kent
locations, including the City Park Office in Gillingham and Black
Horse House in Tonbridge.

"Accord have made it absolutely clear to LBG that we expect them
to work the union to do everything possible to avoid compulsory
redundancies.

"Accord officials will be on site on June 4