Lloyds bows to public pressure and agrees to talks with charity arm

Published on Wednesday 4 November 2009 21:14

LLOYDS Banking Group has caved in to pressure and will meet its charitable arm tomorrow, following a high-profile public campaign against plans to cut funding to charities across Scotland.

The talks between the banking group and Lloyds TSB Foundation for Scotland are the first since negotiations broke down in July when the foundation objected to its annual income – 1 per cent of the bank's pre-tax profit – being halved due to the financial crisis.

Last night, foundation chief executive Mary Craig, who had warned many charities could be forced to close, said: "We hope that yesterday's announcement by the banking group, that it is to sell off significant parts of its business, will help move discussions away from a focus on a reduction in the percentage of pre-tax profits the foundation receives.

"We will clearly go to the meeting with an open mind, but we also remain resolute that agreeing to something that would damage the covenant or our independence would not be in the best interests of the foundation or Scotland's charities."

The campaign has attracted support from politicians including finance minister John Swinney, Scottish Labour leader Iain Gray and leading members of the business community, such as Sir Tom Farmer.