Moore Urges Lloyds to Resolve Charity Dispute (BANFFSHIRE and BUCHAN COAST Liberal Democrats)

BANFFSHIRE and BUCHAN COAST Liberal Democrats <info@banffandbuchanlibdems.org.uk>

Moore Urges Lloyds to Resolve Charity Dispute

January 26, 2010 6:01 PM
Originally published by Scottish Liberal Democrats

MP Michael Moore has warned that the Borders voluntary sector will face a funding crisis unless a dispute over finance between Lloyds Banking Group (LBG) and the Lloyds TSB Foundation is resolved.

Mr Moore met with Mary Craig, Chief Executive of the Lloyds TSB Foundation Scotland, earlier this week after receiving a number of letters from local charities that have been affected by the Foundation's decision to suspend their grant application process at the end of 2009.

This decision was taken after LBG sought to change the terms under which they provided funding to the Scottish branch of the Foundation. During the meeting with Mr Moore, Ms Craig argued that LBG's plans would restrict their ability to direct grants to the projects and areas where they are needed most. 23 charities in the Borders received funding from the Foundation between 2006 and 2009, to a total sum of almost £290,000.

Ms Craig expressed her sympathy for those charities that are set to lose out and confirmed that officials at the charity and Borders trustees are working on a 'plan B' to provide as much help as is possible to those groups experiencing financial difficulties while the dispute is resolved.

Mr Moore has now written to Sir Win Bischoff, Chairman of LBG, seeking an urgent meeting to discuss how negotiations can move forward in a way that would allow the grants application process to restart.

Commenting, Mr Moore said:

'After discussing the LBG funding proposals in some detail with staff at the Foundation, it is clear that the decision to suspend grants was not taken lightly. However, the fact remains that a number of important Borders charities are likely to experience severe financial difficulties as a result of this drastic step.

'I am now seeking an urgent meeting with the Chairman of LBG to discuss possible solutions to a dispute that has dealt a crippling blow to the voluntary sector in Scotland.'

Notes:

The Lloyds TSB Foundation (Scotland) is one of four independent charities funded through a legal arrangement originally created when TSB de-mutualised in the 1980s and reconfirmed when Lloyds merged with TSB in the 1990s.

In 2009, the new LBG created when Lloyds merged with HBOS put forward proposals for funding arrangements which the Scottish trustees believe to be inferior to those that exist currently.