Lloyds Bank recruits former head of UK Investment Office to take on government liaison position

Lloyds Banking Group Wins £100 Million UK Government Banking Contract

Lloyds Banking Group has secured a significant contract to provide banking services for multiple UK government departments and public sector organisations, marking a deepened engagement with the UK government and government-linked institutions. The value of the contract, which was awarded after a competitive tender, is approximately £100 million (about $134 million).

The appointment, which saw Toby Lott join Lloyds Banking Group as managing director - governments, comes after he previously worked at the Office for Investment (OfI) as head of UK capital formation. Prior to his government stint, Lott spent more than 20 years at US-headquartered bank JP Morgan.

Under the contract, Lloyds Banking Group will manage banking services for over 30 government departments and public sector bodies. These organisations include HM Revenue & Customs (HMRC), Driver & Vehicle Licensing Agency (DVLA), Department for Transport, and the Ministry of Housing, Communities and Local Government.

The contract involves processing a range of payments on behalf of Government Banking, which provides a shared banking service across central government and wider public sector customers. Lloyds Banking Group's cash management and payments platform, 'Lloyds Bank Gem', was specifically highlighted in the contract award.

The contract has a timespan of eight years, with an option to extend up to four more years. The Contract Finder website records the start-date as 28 July 2025, and the end date as 27 July 2037.

The UK government acquired a 43% stake in Lloyds Banking Group in 2009 during the financial crisis, but it has since returned the group to full private ownership between 2013 and 2017. The bank's new role in providing banking services to the government aligns with the UK Modern Industrial Strategy, which prioritises growth-driving sectors such as defense, clean energies, and foundational sectors like steel, critical minerals, and logistics.

The Office for Investment, a joint unit across Number 10, HM Treasury, and the Department for Business and Trade (DBT), also played a role in this development. The Office for Investment has approximately 200 staff in the UK and in-country teams in 25 priority markets.

Toby Lott's role at Lloyds Banking Group involves leading the build-out of the bank's capabilities in this space, working closely with colleagues to deliver tailored solutions aligned to government priorities. However, there are no relevant search results indicating which government agencies or state-affiliated institutions Lloyds Banking Group is increasingly engaging with following Lott's new role.

The government announced a revamp of the Office for Investment on 5 June, aligning it with the UK Modern Industrial Strategy, which was published on 23 June. This revamp could potentially lead to further opportunities for Lloyds Banking Group and other financial institutions in the future.