Lloyds' covenant

As chief executives of the national Scottish charities working on tobacco, drugs and alcohol, we have consistently seen the positive differences that the Lloyds TSB Foundation's engaged and intelligent grant-making bring in Scotland.

Much of the foundation's work supports small-scale charities and local initiatives, in line with the founding intention that 1 per cent of the bank's profits should directly benefit the communities that supplied the funds on which the bank's success was built.

At a time when Scottish charities most need funding to maintain services and meet pressing social needs, we are very concerned that the Lloyds Banking Group is moving to terminate its covenant with the foundation rather than fully consider its proposal for a short-term loan to be paid back when the bank returns to profit.

We would hope that in the higher echelons of Lloyds Banking Group there remains a sense of true corporate social responsibility and that they will engage in proper dialogue with the foundation about how best to maintain this vital support to Scottish communities.

Failing that, many charities and individuals may well decide to take their business elsewhere.

SHEILA DUFFY

Chief executive

ASH Scotland

JACK LAW

Chief executive

Alcohol Focus Scotland

DAVID LIDDELL

Director

Scottish Drugs Forum