Politicians and business experts have spoken of their horror following suggestions insurance giant Aviva may be set to quit Perth.
Almost 1,500 jobs could be lost if the company pulls out of the Fair City. It has been suggested that the firm is considering relocating to Glasgow when the lease on its Pitheavlis office expires in 2014.
However a spokesman for Aviva says no decision has yet been taken on whether to move the company.
As well as devastating numerous local families, any loss of one of the city’s largest employers would have a terrible impact for other businesses, according to the local chamber of commerce.
Vicki Unite, chief executive of Perthshire Chamber of Commerce, said the company had gained many benefits through being located in Perth and warned that fewer people in employment would result in less money circulating through local shops.
She said: “There is no doubt the loss of any major employer would have an impact on the local economy, not just directly through jobs being relocated elsewhere but through the supply chain and reduced spending in the area. We very much hope Aviva decides to maintain the base it has in Perth.”
“We understand that individual businesses will always have to balance different issues and priorities when deciding where to locate their operations.
“However, we hope that Aviva finds a solution which means it continues its long and successful history of having its headquarters based in Perth.”
Local MP Pete Wishart has also raised his concerns over the potential jobs blow.
He said: “I am confident that the outcome of this process will be a renewed agreement between Aviva and the owners of the site and a continuation of what has been a mutually beneficial collaboration between the company and the city.”
An Aviva spokesman stressed that a decision was yet to be made, and was routine practice when a lease came up for renewal.
He said: “Aviva’s Perth lease expires at the end of 2014, so as you would expect, we are reviewing our property strategy for the period from 2015 onwards.
“This is part of Aviva’s normal practice, to use the renewal of a property contract as an opportunity to ensure our property strategy is fit for the future.
“Part of that review is to assess our options…our review includes the option to remain in Perth. We will announce the outcome as soon as the review is complete.”