Budget 2014: £10m in Libor fines to be awarded to youth charities

Charity Comments Off on Budget 2014: £10m in Libor fines to be awarded to youth charities

Funding worth £10m made up from Libor fines will be awarded to charities and organisations who deliver social action opportunities, Chancellor George Osborne announced in the latest Budget.

The fines, which originally were only to go to military charities, will be delivered through the Youth United Network, a network of voluntary youth organisations. The charity will see funding delivered to organisations including the Scout Association, the Army Cadet Force, the Fire Cadets and the RAF Air Cadets.

A further £10m from libor fines will be available for search and rescue and life boat service charities. This is part of the £100m fund from libor fines that was announced in December 2013’s Autumn Statement.

Rosie Thomas, director of the Youth United Foundation, said: “Social action is at the heart of what the Youth United Network does.”

“This new funding will enable more young people to get involved with Scouts, Girlguiding, Cadets and Brigades groups, particularly in deprived areas.”

The Chancellor said: “Financial services are a hugely important industry to this country which I want to promote around the world.

“But I also want the fines paid by those who have demonstrated the worst of values to support those who demonstrate the best of British values.”

One of the charities who will receive this funding is St John Ambulance.

The charity’s chief executive, Sue Killen, said: “We are delighted by the announcement in the Budget that we are one of the organisations to benefit from these funds, which will enable us to increase opportunities for young people volunteering and learning first aid with St John Ambulance.”

The Scout Association and the Girlguiding UK will also both receive a share of the funding.

Wayne Bullpitt, UK chief commissioner of the Scouts, said: “We want to make Scouting accessible to as many young people as possible. The new funding, announced today, will help us continue this vital work to improve the life chances of even more young people from some of the UK’s most challenged communities.”

Chief Guide Gill Slocombe said: “I am delighted that the government is committed to continuing this initiative which has enabled us to welcome 226 new volunteers who are supporting more than 90 new groups.”

The funding was sourced from fines levied on banks involved in attempting to manipulate the Libor benchmark. In January 2013 the government pledged it would give £35m from fines to armed forces charities.

In the last two years the Youth United Network has collectively opened 444 new groups in deprived areas, supported by a £10m grant from the Department for Communities and Local Government. This is seperate from funds received from Libor fines.

Osborne said search and rescue organisations would recieve funds from Libor fines, this will be a further £10m.

He said: “I will continue to direct the use of the Libor fines to our military charities and our emergency service charities too.

“Because the sums continue to grow, I can today extend that support to our search and rescue and lifeboat services.”

Survivors for Peace

Another grant announced in the Budget was for the Survivors for Peace, a programme run by national charity Foundation for Peace, working to support people affected by conflict, acts of terror and politically motivated violence.

The charity was set up by the parents of 12-year-old Tim Parry, who was killed alongside three-year-old Johnathan Ball 21 years ago by an IRA bomb.

Last month the programme announced it would close due to lack of funding. This announcement means it is financed for the next fiscal year.

The charity, which no longer receives lottery funding, will be provided with £150,000 from the government.

Osborne said: “To honour the memory of all victims of terrorism we will provide the funding the programme needs.”

Foundation chief executive, Nick Taylor, said: “This announcement follows 15 months of intensive discussions and shows the positive face of politics.

“The government, senior members of the opposition and the Northern Ireland executive parties are completely engaged and supportive.

“This commitment by the Chancellor will send a strong message to those in our society who have been affected by terrorism and political violence that they are not alone.”

A further £100,000 is being awarded to the Lockerbie-Syracuse Trust to contribute to the scholarship programme which sees students from Lockerbie attend Syracuse University in the USA.

A grant of £1m is being awarded to the Magna Carta Trust, to support the commemoration of the 800th anniversary of the Magna Carta next year.

In what was clearly a dig at the leader of the opposition Ed Miliband, the Chancellor said: “King John’s humbling centuries ago seems unimaginably distant.

“A weak leader, who had risen to the top – after betraying his brother, compelled by a gang of unruly barons to sign on the dotted line.

“So I will provide a grant to the Magna Carta Trust to ensure that today’s generation learn the lessons of the past.”

Funding for cathedrals

The government also announced that they will provide a £20m grant for repair schemes to cathedrals to mark the Great War.

The Cathedrals Fabric Commission for England welcomed this announcement.

Frank Field MP, chair of the Cathedrals Fabric Commission for England, said: “The Chancellor scores a double-first here. There will be widespread support for the government making a direct contribution to the glories of English cathedrals, places which millions of us enjoy each year.

“In addition I am very pleased in that the money is to be spent on Roman Catholic as well as Anglican cathedrals.”

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For the full 2014 Budget Summary please click this link BWM 2014 Budget Report