Share

Scottish MPs rap Lloyds Banking Group for halting charitable funding

Scottish MPs rap Lloyds Banking Group for halting charitable funding
News

Scottish MPs rap Lloyds Banking Group for halting charitable funding

Fundraising | Vibeka Mair | 21 Oct 2009

A coalition of Scottish MPs has called on Lloyds Banking Group to reconsider its decision to halt funding for the Lloyds TSB Foundation for Scotland.

Last week, the Foundation announced that it had closed its doors to new grant applications “for the foreseeable future” after failing to reach an agreement on future funding with its main benefactor the Lloyds Banking Group.

The move has angered Scottish MPs who have raised concerns about the loss of around £6bn annually as a result of the dispute.

Alistair Carmichael, MP for Orkney & Shetland, has tabled an Early Day Motion this week which complains that Scottish charities are set to lose £22m over the next nine years as a result of the bank’s new proposals, yet Lloyds Bank received over £40bn in government aid in the past year. 

Seventeen MPs, most representing constituencies in Scotland, have signed it.

The Foundation has also received a high volume of political support from MSPs and the Scottish government.

"Quite a few have got in touch with us over the last week," said a spokeswoman. "We will also be having discussions with Iain Gray, leader of the Scottish Labour Party, Tavish Scott, leader of the Scottish Liberal Democrats, and Murdo Fraser, deputy leader of the Scottish Conservatives."

As part of the covenant between the two organisations, the Foundation received 1 per cent of the Lloyds Banking Group’s pre-tax profits per annum, but as the Group is predicting losses this year the Foundation would not receive anything under this arrangement.

Negotiations broke down after the Foundation said it was offered funding for the next four years as assistance until the Group returns to profit, but only in return for a future reduction of the covenant to a 0.5 per cent share of profits and a revocation of the Foundation’s independent status.


 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Booking open for the Charity Finance Charity Property Conference

4 Mar 2015

The conference, which will be held on 7 July at BMA House in London, is focused on helping charities get...

Former Citizens Advice chief David Harker dies

3 Mar 2015

David Harker, former chief executive of Citizens Advice, passed away yesterday on his birthday after a...

Eton income rises to £62m; bursaries and scholarships cost it £5.7m

2 Mar 2015

Eton College posted a surplus of £3.2m in its last financial year and income from school fees increased...

Charities' use of data often pointless, dangerous and counterproductive says DSC chief

4 Mar 2015

Charities often spend too much time collecting and measuring data and should rely more on their personal...

Former Citizens Advice chief David Harker dies

3 Mar 2015

David Harker, former chief executive of Citizens Advice, passed away yesterday on his birthday after a...

Former Science Museum chair announced as British Heart Foundation's next chair

3 Mar 2015

Amazon China president, Douglas Gurr, has been appointed as the new chair of the British Heart Foundation...

Daniel Phelan dies, aged 58

13 Feb 2015

Daniel Phelan, owner and editor-in-chief of Civil Society Media, passed away on Wednesday following a...

LinkedIn launches matching service to bring charity volunteering opportunities to 250,000 members

6 Feb 2015

Charities in the UK will be able to advertise volunteer opportunities to 250,000 LinkedIn members who...

Free guide to Bitcoin donations produced for charities

5 Feb 2015

Two Bitcoin organisations have launched a website and free guide to promote the use of the digital currency...

Join the discussion

Twitter button

@CSFundraising