D ESPITE some reservations, and opposition, among Britannia members, it would have been a shock if yesterday's merger with the Co-operative Financial Services (CFS) had not gone ahead.

Though critics here have accused the Leek-based giant of selling out, interestingly, opponents of the deal in Manchester have accused CFS of giving up control of its own destiny to Britannia. We believe this is definitely a merger of two equals, for both have strengths which correspond perfectly with the other's weaknesses, and, if well-managed, the whole should prove greater than its constituent parts in the next decade.

B ut make no mistake. Despite the rhetoric of Britannia chief executive Neville Richardson about a stronger mutual society based on staunch ethical principles at a time when banks have run out of moral credit, this is a merger dictated by market forces. There are still tough times ahead in the financial services market and this deal has been about Britannia and CFS strengthening themselves in the manner of their own choosing, rather than risking being picked off by a larger institution if something goes awry in the next 18 months. It's expected there will be a reduction in head office staff in Leek through natural wastage in the next couple of years, though branch workers have been told they're safe. For many, long-term job security will determine how this merger comes to be regarded in future years. Britannia has always enjoyed a reputation as a good employer and a staunch supporter of the communities that provide the bedrock of its support.

Long may that continue.