BANKS preparing to switch their registered headquarters to England is a glimpse of the future, according to the leader of Glasgow City Council.

Clydesdale Bank, which is headquartered in the city centre, has said it will register its head office south of the border following a Yes vote to protect customers' deposits.

The bank followed RBS and Lloyds stating the same intention, leading to accusations that independence will cost jobs and damage the economy.

Alex Salmond said that the leaking of the RBS announcement was evidence of concerted scaremongering tactics from the No campaign.

Clydesdale Bank's chief executive David Thorburn said the majority of staff would not be affected by the move. He said: "We have strong roots in Scotland and we remain fully committed to our customers, staff and the communities in which we operate.

"Any change to the company's legal structure would have no impact on the vast majority of the bank's staff. Clydesdale Bank would continue to serve its customers just as it has since 1838 and Glasgow will continue to be the bank's key operational centre."

Gordon Matheson, leader of Glasgow City Council, however, said he was concerned about the Clydesdale plans: "In all normal circumstances, a plan to move headquarters to England would be vociferously resisted by the Scottish Government and would be seen as a serious blow to our economy and global standing. Today Mr Salmond considers it as a price worth paying to break up Britain."

The council leader said he had spoken with the bank following the news

He said: "Clydesdale Bank has been based in Glasgow since 1838. I have spoken to the bank today and they have confirmed that in order to protect customer deposits they will move their headquarters to England if there is a Yes vote, moving certain key functions with it.

"This highly regrettable situation has come about because a post-Yes Scotland will not be able to guarantee the security of Scottish banks.

"If Scotland votes No, Clydesdale Bank will remain headquartered in Glasgow.

"This isn't scaremongering; it is a deeply regrettable economic reality that flows from the SNP's plans for independence, and is a glimpse of what is to come if we support separatism."

RBS issued a statement on its plans to register in England if Scotland becomes independent.

The statement said: "RBS has undertaken contingency planning for the possible business implications of a Yes vote.

"RBS believes that this is the responsible and prudent thing to do and something that its customers, staff and shareholders would expect it to do."

The First Minister said RBS had no plans to move jobs and it was clear the bank was committed to Scotland: "The confirmation from the chief executive of RBS that they have no plans to move operations or jobs from Scotland following a Yes vote is a very welcome one which brings a measure of much-needed common sense to the debate. From the chief executive's letter to staff it is clear that the bank is totally committed to a long-term future in Scotland.

"However, the briefing around RBS's intentions - attributed to Treasury sources - would appear to be a serious breach of financial regulations, and that is why I am writing to the Prime Minister asking for an investigation of the leak of partial information ahead of RBS's own announcement. Likewise, the Treasury's actions appear to be a serious breach of referendum rules on government activity before the vote, and that is similarly worthy of investigation.

"The Treasury briefing is all part of a panicked Westminster effort to shore up a collapsing No vote as people all across Scotland turn their back on the scares and fears of the No campaign and turn in huge numbers towards the positive aspirational vision of a Yes vote."