Lloyds TSB charity row set to continue as London talks fail

Published on Friday 6 November 2009 21:46

THE battle between Lloyds Banking Group and its charitable arm looks set to continue after "crisis talks" aimed at resolving a bitter funding dispute broke down yesterday.

The meeting in London followed a high-profile public campaign by the Lloyds TSB Foundation for Scotland over plans by the banking group to halve the charity's annual income because of the financial crisis.

Last night, charity campaigners said the lack of a resolution did not mean the game was over and promised to keep the foundation operating in Scotland.

Mary Craig, chief executive of the foundation, said: "We are disappointed that we have been unable to reach agreement with the banking group at our meeting today as their position appears to be largely unchanged.

"At today's meeting the banking group did discuss our proposal but was not prepared to accept any part of it as a useful way forward. While we understand they are keen to reach one agreement with all four foundations, Lloyds TSB Foundation for Scotland is governed by an independent board of trustees, who can only speak for Scottish interests. Clearly trustees will now be considering all the options available to the foundation going forward."

Shane O'Riordain, group communications director for Lloyds TSB, said: "We believe it's very important we offer the same accommodation to all four foundations .

"We also remain focused on continuing to make significant donations in Scotland through the foundation if an accommodation through them can be reached.

"We very much hope an accommodation can be reached with the foundation if they accept the same deal as the other foundations."

"We've asked the foundation to reflect on our offer and we believe they will do so.

"We hope the trustees and the foundation will weigh up very carefully the offer we've made and the long-term arrangement we are willing to come to with them."