Five questions answered on the re-emergence of TSB after 18 years

Lloyds TSB re-brand 600 stores.

The name TSB will once again feature on the UK’s high streets after Lloyds TSB re-brand 600 of its stores across the country with the name. We answer five questions on TSB’s comeback.

Why has Lloyd TSB branded 600 of its branches TSB?

The bank, which is 39 per cent owned by the taxpayer, is branding the branches TSB – which used to be on the high street 18 years ago – in preparation to sell of the new bank next year as part of a process ordered by the European Commission to provide greater competition.

It was also a condition of the government’s bail out of the bank. 

How will this affect customers of Lloyds TSB?

For the five million people who will have their accounts transferred to the new bank the only change they will experience is a change in name.

Bank account numbers and sort codes will remain the same and no one’s card will stop working because of the switch, the bank has reassured.

Instead customers will receive a new card with the new name in due course.

Until the sell-off will TSB be run as a separate bank or part of Lloyds?

The bank will be run as a separate entity until its shares are sold off next year.

The creation of a separate bank comes after a deal with the Co-operative Group to buy the branches fell through due to concerns about the financial stability of the Group.

What have the experts said?

Many experts have raised doubts over whether selling off TSB as a separate bank will make much difference to competition.

Shore Capital's banking analyst Gary Greenwood told the BBC: "TSB will be painted as a new challenger brand on the high street but I doubt that its pricing is going to be very differentiated to competitors.

"Current accounts tend to be very sticky and customers only tend to move if they have a really, really bad experience."

When was TSB originally set up and what happened to it?

TSB was set up 200 years ago as the Trustee Savings Bank and 18 years ago it was merged with Lloyds.

Lloyds TSB. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Love him or loathe him, Britain needs more Alan Sugar

Big business is driving down wages, failing to invest, and funnelling rewards to the richest.  Entrepreneurs - and the state - need to fill the gap. 

The business baron who loves a bust-up has just been hired by Her Majesty’s Government to tour the country inspiring the next generation of apprentices. And he’s got his work cut out for him.  

Britain is loads more enterprising than it used to be - but the truth is, we’re miles behind our rivals. The good news is that Britain boasts nearly two million more firms than at the turn of the century. Over 40 per cent of Europe’s “unicorns” (new firms worth over $1 billion) are UK based. And by the next election, there will be more self-employed people than public service workers. 

But, here’s the bad news. Globally, we’re only 48th out of 60 in the global enterprise league table - and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America - google.co.uk and amazon.co.uk. Worst of all, according to new House of Commons library figures which I commissioned this week, over a million people have left entrepreneurial activity in the last three years. 

Yet in my new history of British capitalism, Dragons, published today, I show how we’re a nation built by some of the greatest entrepreneurs on the planet. They were the buccaneers like Robert Rich, who built the trading companies and colonies of north America. The traders like Thomas Diamond Pitt who built old multi-nationals like the East India Company. They were industrial revolutionaries like Matthew Boulton who perfected the steam engines, and capitalists like Nathan Rothschild who built the bond market. Down the ages, there were of course great rogues and fraudsters, slavers, opium dealers and imperialists, like George Hudson, William Jardine and Cecil Rhodes. And through the centuries, women were in particular, were frozen out of the power structures of the market. 

But, throughout our past, great visionaries like George Cadbury, William Lever and John Spedan Lewis not only created new wealth but invented new ways to share it, from Port Sunlight to Bournville, to the board rooms of the John Lewis Partnership. 

Theirs is the entrepreneurial spirit we are going to need to rebuild Britain. Why? Because we can no longer leave the task to big business. Big business is driving down wages, failing to invest, and funnelling rewards to the richest. Today, UK firms are sitting on an extraordinary £522 billion in cash. And that’s after they lavished out £100 billion in share buy-backs in 2014. According to Larry Fink, the head of Black Rock which is the world’s biggest investment manager, the gargantuans of the global economy are simply failing to invest in the new jobs and industries of the future. 

So we’re depending on our entrepreneurs to turn new ideas into new industries and new industries into new jobs - whether it is in big data, cyber-security, driverless cars, the internet of things, or genetic medicine. It’s not just good for progress. It’s good for jobs. In fact, if our young people today were as entrepreneurial as their counterparts in Germany or America, its estimated they would create an extra 100,000 jobs. 

The big lesson from 600 years of the history of capitalism is simple: entrepreneurs make history - by inventing the future. So we need the government to start doing an awful lot more for the enterprise economy; spreading enterprise education, investing more in science, shifting government contracts to small high growth firms, and sorting out the banking system. But if we want a better future for Britain, we need an awful lot more entrepreneurs to do well. And so we need AlanSugar to succeed.  

Dragons: Ten Entrepreneurs Who Built Britain is published by Head of Zeus today

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.