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

Norwich Union is the area’s biggest private sector employer and Roseanna Cunningham MSP said: “Perth has had its share of bad jobs news in the past so I have real sympathy for the communities around the UK, particularly those in Dundee, who are facing job losses and closures as a result of the announcement.

“There will be some comfort for the folk in Dundee that the jobs are remaining in Tayside and I am sure that many will be able to comfortably transfer to Perth without too much disruption to their lives.

“The news for Perth, however, is good and bodes well for the future.

“Being named as one of Norwich Union’s seven centres of excellence shows the important role that Perth continues to play at the very heart of the operations of this leading player in the UK insurance market.”

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 in 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. 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.”

While the historic Norwich Union brand will be phased out over the next two years in favour of Aviva, the news spells the end of a whispering campaign suggesting the Pitheavlis operation was hanging in the balance.

MP Pete Wishart said: “The loss of up to 1800 jobs will be a bitter pill for many families and communities and I am particularly sorry for what this announcement means for the Norwich Union operation in Dundee.

 “Perth has long heritage within the insurance industry, and the experience and skills which have been built up at Pitheavlis over the years are a testament to that heritage. “Perth has long been a centre of excellence within the insurance industry and I look forward to that continuing.

“The importance of Perth to Norwich Union has been underlined by today’s announcement and I think it signals that insurance in Perth continues to have a bright future reflecting its proud past.”

Councillor Ian Miller, leader of Perth and Kinross Council, said: “Norwich Union is a significant employer in the area and the council is committed to working closely with its senior management to ensure that the company can continue to prosper and contribute to the rapid pace of economic growth in Perth and Kinross.”