Decision details

To consider the proposed changes to the Council’s banking arrangements and the impact upon the Charity.

That agreement be given to the transfer of the Charity’s banking arrangements to Lloyds TSB Bank, the successful tenderer for the Council’s banking arrangements.

Nat West Bank (part of the Royal Bank of Scotland group) is being forced to sell part of its asset base to Santander UK plc as part of an EU directive for accepting a Government bail out to deal with its funding problems.  This sale will facilitate the repayment of the debt to the Government.

Maidstone Borough Council’s accounts form part of this asset sale, and this includes the accounts of associated charities including the Charity.  The Council does not wish its business to go to Santander and has invited tenders for its banking arrangements.

Three tenders have been returned and, following an evaluation process, the tender is to be awarded to Lloyds TSB Bank.  The Charity has used the Council’s banking arrangements for some considerable time and this arrangement has been at no cost to the Charity.  It is therefore considered appropriate for the Charity to transfer its banking arrangements to Lloyds TSB Bank in line with the Council’s decision.

The Charity could choose to make its own banking arrangements separate to those of the Council, but this would involve additional administration and potentially additional costs being incurred.