RBS boss McEwan set to spare six bank branches to avoid second public admonishment

Following his chastening experience before a parliamentary committee last week over the conduct of the bank’s Global Restructuring Group, Royal Bank of Scotland chief executive Ross McEwan is attempting to avoid a repeat appearance after entering into talks with MPs aimed at securing a stay of execution for six of the bank’s branches slated for closure.

The news follows what has proven to be the bank’s highly controversial decision to slash its branch network, including the last remaining branch in 13 Scottish towns and villages, and the closure of 39 other outlets across Scotland.

Since the decision was was taken by the 73 per cent state-owned bank in December, MPs have joined campaigning members of the public in heavily condemning the Edinburgh-based lender for taking the step without any prior consultation amid a storm of controversy and claims it will leave rural Scottish communities without access to any banking facilities.

Now, according to reports, threatened with the prospect of yet another embarrassing appearance before MPs, Mr McEwan has offered to partially back down and strike a deal with the Scottish affairs select committee to avoid a public grilling.

However, no announcement has yet been made and the intervention of SNP MP Ian Blackford, who has been a highly vocal critic of RBS’s closure plan, has been criticised as jeopardising a possible agreement.

In light of a pending deal to save six branches, Mr Blackford made the public assertion at the weekend that he was in the process of striking a bigger deal that could save more than a dozen branches, claiming he had held “productive” talks with RBS bosses and accusing Scottish Conservatives of “failing to lift a finger”.

Mr Blackford, who is MP for Ross, Skye and Lochaber, told the BBC’s Sunday Politics Scotland programme that he had had a number of conversations and meetings with Royal Bank of Scotland over the last few weeks.

He said he was “pleased to say that good progress has been made and I expect a positive announcement”.

However, an RBS source was quoted saying that Mr Blackford’s intervention was “not helpful”.

A Scottish affairs committee source was reported as saying: “RBS were ready to withdraw six branch closures, hoping that would have avoided McEwan appearing at the committee, but now Blackford is trying to claim the glory for himself.”

Conservative MP Colin Clark, whose Gordon constituency is set to lose several RBS branches, accused Mr Blackford of “undermining” the work of the all-party Scottish affairs select committee.

He added: “It would appear that Ian Blackford is trying the take the headlines for this, whilst that committee has taken the lead on it.

“It is a bit of a reflection on Ian Blackford’s security of his leadership.”

Labour’s shadow Scottish Secretary Lesley Laird, said there should be “no back room deals done with RBS”.

She added: “I am astounded that Ian Blackford is cutting across a live investigation being undertaken by the Scottish select committee into RBS and its proposals to close vital high-street bank branches.”

“The integrity of the select committee should not be undermined and if RBS is rethinking its position on closures then Ross McEwan (RBS chief executive) should come before the select committee and explain that, openly and transparently in the proper democratic fashion.”