Local MP Sir Menzies Campbell has expressed his disappointment after the recent announcement that the Lloyds TSB Foundation for Scotland is suspending its grant application process.
Since its establishment in 1985, the Lloyds TSB Foundation has made over 12,000 awards to charities across Scotland, at a total cost of almost £85 million. North East Fife charities that have received funding from Lloyds in the recent past include the Heat of Fife RDA and both Families First and Homestart East Fife are currently supported.
The decision to suspend grants was made after the Foundation and the Lloyds Banking Group were unable to reach agreement on the terms of a new funding agreement. The charity has pledged to honour existing commitments in full, but will accept no new funding applications after the final round of awards are confirmed in December. It is thought that the suspension of these grants will see Scottish charities miss out on at least £6 million a year in funding.
Sir Menzies said:
“Charities have found it increasingly difficult to secure the funding they need to survive since the beginning of the economic downturn.
“Although the news that existing funding commitments will be met will come as a relief to those organisations here in North East Fife that had secured financing from the Lloyds TSB Foundation in previous funding rounds, the suspension of these grants is likely to have a profound effect on the services that non-profit groups all over Scotland will be able to provide in future.
“We must hope that the Foundation and the Lloyds Banking Group can reach agreement on the terms of a new funding agreement and that the grant application process is resumed as soon as possible.”