Big names join fight for HBOS

Figures from industries including construction, retail, property and tourism are all concerned the controversial deal could be against the long-term interests of the taxpayer. They are deeply worried it could prove contrary to Scotland's future economic success and damage its corporate environment and retail banking and mortgage sectors.

Sir Tom and his contemporaries are the first to sign an open letter being sent to political leaders throughout Scotland and the UK – including Alistair Darling, the Chancellor, and Alex Salmond, the First Minister. In it, they call for a "rapid reappraisal by a suitably qualified body, such as the Competition Commission, to fully judge if public interest is being best served" by the Lloyds TSB takeover.

They back The Scotsman's call for answers to the questions it believes to be integral to the deal. The newspaper has launched a drive to determine whether the takeover is still in the best interests of the country, its taxpayers and its businesses.

The letter was penned by Dan Macdonald, chief executive of Macdonald Estates and chairman of the Scottish Property Federation, and co-organised by Mark Shaw, chief executive of Hazledene Group.

It comes as the role of the HBOS's non-executive directors was brought into question, with calls for them to put both options – staying independent or accepting the takeover – to the bank's 2.1 million shareholders.

Mr Shaw told The Scotsman: "Signatories were still coming forward last night, and we confidently expect to add considerably more over the weekend. We hope the initial group of supporters will indicate the breadth and range of concern among Scottish business and that even more will come forward."

However, the House of Lords agreed yesterday the government could waive competition law to let the deal through. An order amending the Enterprise Act 2002 allows Westminster to take steps in the interest of "maintaining the stability of the UK financial system".

It is set to be agreed by a Commons select committee on Monday, giving Lord Mandelson, the Business Secretary, the power to give the green light to the deal.

Alistair Carmichael, MP, the Liberal Democrats' Scottish spokesman, has challenged Mr Salmond to demonstrate his support for HBOS remaining an independent bank by signing a Commons motion on the issue.

He has tabled an Early Day Motion calling for government support to enable the bank to stay independent, now that the UK Bank Reconstruction Fund has made this a realistic alternative.