SCVO urges Lloyds Banking Group to reverse funding cut to Scottish foundation

Umbrella group starts petition and delivers letter to bank's AGM asking it to change 'cynical' decision

SCVO campaign illustration by Sarah Tanat-Jones
SCVO campaign illustration by Sarah Tanat-Jones

Scottish umbrella body the SCVO today started a petition calling on Lloyds Banking Group to reverse its decision to end its funding to the Lloyds TSB Foundation for Scotland.

Because of the recession, the bank decided to reduce the proportion of its annual pre-tax profits it awards to its four UK foundations from 1 per cent to 0.5 per cent. It also set out plans to appoint senior bank staff as trustees.

The terms were rejected by trustees at the Lloyds TSB Foundation for Scotland but accepted by the other three foundations. The bank subsequently told the Scottish foundation it would not receive any more funding after its current covenant expires in nine years' time.

The SCVO claims thousands of Scottish charities will be affected by the loss of funding and some could struggle to survive.

Martin Sime, chief executive of the SCVO, will deliver a letter from Alison Elliot, his organisation's convenor, to the bank's annual general meeting in Edinburgh today calling for a change of heart.

Sime said: "The decision of Lloyds Banking Group is a cynical one, putting the interests of this taxpayer-funded bank before the needs of communities across Scotland."

The foundation is one of about 1,300 SCVO members. A spokeswoman for the SCVO said it hoped the petition would attract thousands of signatures and maintain pressure on the bank to return to the old funding agreement.

To see the petition, click here.

 

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