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Council to urge Lloyds Banking Group to continue support (23/10/09)
Highland Councillors will be asked next week to write to Lloyds Banking Group calling on them to continue their support of the Lloyds TSB Foundation for Scotland.
The Foundation has recently written to all Scottish councils informing them of the suspension of all its grant-making activities for the foreseeable future, with a resulting loss to Scottish charities of as least £6 million a year.
The Foundation, together with similar autonomous foundations in the rest of the UK, receives a 1% share of the Lloyds Banking Group’s pre-tax profits and, since the Lloyds Banking Group has stated that no profit is predicted for the current year, the Foundation has no source of income.
The Foundation has entered into negotiations with Lloyds Banking Group in order to find an interim solution but these negotiations have, to date, failed because of Lloyds Banking Group’s insistence on a new agreement which would reduce their contribution from 1% of pre-tax profits to 0.5%. They also want to place employees on the Board of the Foundation and determine where grant support is targeted.
At its full council meeting on Thursday 22 October, councillors are being asked to consider a cross-party notice of motion signed by seven councillors including Convener - Sandy Park, Leader of the Administration - Michael Foxley, Budget Leader - David Alston, Leader of the Labour Group - Provost Jimmy Gray, and Leader of the Opposition - John Finnie, SNP.
Councillor Alston said: “Highland Councillors are being asked to show their support to Lloyds TSB Foundation. We will be requesting that the Council contact Lloyds Banking Group and urge them to find a solution which can support the Foundation in the long term by continuing its grant-making activities at the current level and at the same time maintain its independence and autonomy.”