Perthshire business chiefs and politicians have expressed relief after the Fair City was spared the 1800 jobs axe from the insurance giant Aviva.

The parent company of Norwich Union announced a major restructuring on Friday and while Dundee and Glasgow were among cities losing out, Perth was identified as one of seven key “centres of excellence,” and one of just two north of the border.

At the same time, hundreds of staff at insurance giant Norwich Union are to lose their jobs after the company announced it was leaving its Broadwater home. Reports released on Friday show that insurance operations at The Warren, in Warren Road, would cease within the next two years, resulting in more than 660 job losses.

But for Perthshire it is good news as reports suggest that it could see the local workforce leap from 1200 to more than 1500, with some jobs transferring from the doomed Dundee base.

And company bosses are stressing it spells good news for the Perth jobs market, with a £1.7 billion revenue generating centre ready to create new posts.

Mike Beale, president of the Perthshire Chamber of Commerce said: “The Chamber applauds the decision to make Perth one of the Aviva ‘Centres of Excellence’.

“This recognises the combined efforts of the workforce and the local community to sustain growth and prosperity in Perth. “Job losses in any community are always unwelcome and so we are delighted with the confidence currently being shown in Perth, the original home of the company.”