Kirk hits out at 'shameful' move to axe charity funds

Published on Wednesday 24 February 2010 21:21

THE Church of Scotland has branded the decision by Lloyds Banking Group to halt funding to it charitable arm as "unacceptable and shameful".

Cutting cash to the Lloyds TSB Foundation in Scotland will bring to an end a 25-year-relationship that has seen 85 million donated to Scottish charities. Funding will end in nine years.

The Rev Ian Galloway, convener of the church and society council of the Church of Scotland, said the announcement was "rubbing salt" into the wounds of those already affected by the global financial meltdown. He wrote in his online blog: "The economic situation has already hurt millions of people who cannot afford to fight back.

"And now with the destruction of the Lloyds TSB Foundation, salt will be rubbed into the already painful wounds of those affected. It is, frankly, unacceptable and shameful behaviour from a bank."

His views were echoed by leaders of four childcare charities writing in today's Scotsman. In a letter, they say: "This is a sad moment in the history of charitable giving and corporate social responsibility in Scotland."

A spokesman for the Catholic Church in Scotland said that many of its members would share the Kirk's concerns.

He said: "It is unfortunate that Lloyds have reduced their commitment to this fund and it is clear why this has caused so much concern among members of the Church of Scotland, which would be shared by many Catholics.

"Social responsibility is an important part of the work of many large corporations, and they would do well to remember that with great profits and earnings comes great responsibility."

There are four Lloyds TSB Foundations covering Scotland, England and Wales, Northern Ireland and the Channel Islands. Under the current arrangements, they receive a 1 per cent share of Lloyds Banking Group's pre-tax profits, with the foundation in Scotland receiving about a fifth of that money.

However, the bank had proposed to reduce the proportion of pre-tax profit it gives from 1 per cent to 0.5 per cent. It also proposed to have a director on the foundation's board.

The Scottish foundation refused, arguing that the deal would see it lose funding and threaten its independence by allowing the banking group a say in which charities would benefit.

But writing in today's Scotsman, Shane O'Riordain, group communications director for Lloyds Banking Group, said the company was "proud" of its contributions to Scottish communities. He writes:

"Our position is clear: due to our standing as one of Scotland's largest corporate donors, we will continue to support many good causes across Scotland both now and in the future. Our door remains open to the Scottish foundation."