Senior councillors in Leeds agreed to establish the all-party group after receiving a report about the possible implications for the region of Lloyds TSB's takeover of Halifax Bank of Scotland (HBOS).

The report to Leeds City Council's Executive Board said HBOS employed 6,300 people on four main sites in Halifax and 3,500 people on two main sites in Leeds.

It said the company's presence in Halifax was such that it accounted for 36 per cent of the town's output.

The report added: "Eric Daniels, Lloyds' chief executive, has said that maintaining jobs in Scotland would be a priority. It will keep HBOS's Edinburgh head office as the base for the new company's Scottish business."

Coun Les Carter (Con, Adel and Wharfedale) said it was important local councillors, MPs and others lobbied to maintain jobs in Yorkshire.

Coun Judith Blake (Lab, Middleton Park) said: "An all-party group should be put together to look at how to mitigate the impacts of the situation."

Coun Richard Brett (Lib Dem, Burmantofts and Richmond Hill), council leader, said: "We will convene an all-party group as quickly as possible to explore what we might be able to do."

In a statement issued after the board meeting, Coun Andrew Carter, the council's executive member for economic development who asked for the report to be prepared, said: "The report sets out in graphic detail the importance of HBOS in the economy of the City Region and in Leeds and Halifax in particular.

"Politicians of all parties must unite to make sure that we get a fair deal for the employees of HBOS and for the local regional economy.

"It simply is not acceptable for geographic barriers to enter into the equation. I was horrified that the Chancellor, Alistair Darling and Sir Victor Blank, the chairman of Lloyds TSB, seem to focus their attention on protecting job losses in Scotland. We want to see jobs protected everywhere."