Moore: LBG Decision Bad News For Borders Charities

12.00.00am GMT Mon 22nd Feb 2010

Local MP Michael Moore is warning officials at Lloyds Banking Group (LBG) that their decision to sever funding ties with the Lloyds TSB Foundation in Scotland could have severe consequences for the voluntary sector in the Borders.

Today's decision is the latest move in an ongoing dispute over funding that saw the Scottish Foundation suspend their grant awards process at the end of 2009. 23 charities in the Borders received funding from the Foundation between 2006 and 2009, to a total sum of almost £290,000.

Earlier this year, Mr Moore met with Mary Craig, Chief Executive of the Scottish Foundation, after receiving a number of letters from local charities that were affected by the Foundation's decision. He also wrote to Sir Win Bischoff, Chairman of LBG, urging him to work with the charity and move negotiations forward in a way that would allow the grants application process to restart. In his reply - which was received only last week - Sir Win offered Mr Moore his assurance that LBG remained committed to working with the voluntary sector in Scotland.

Commenting, Mr Moore said:

'I know from my discussions with local charities just how important a source of funding the Lloyds TSB Foundation's grants have been in the past. Though the Foundation are now pursuing alternative funding arrangements, it is clear that this decision is likely to have a profound impact on Scottish charities.

'While the LBG are wholly within their rights to withdraw from the funding arrangement with the Foundation, the way in which this whole process has been managed does them no credit and is certainly not in keeping with the admirable commitment to charity they have displayed in the past.

'After a quarter century of work in Scotland it would be a calamity if the relationship between LBG and the Scottish branch of the charity were to end under these circumstances. LBG needs to think again and come up with a solution that will secure the long term future of the voluntary sector in the Borders.'