The Chancellor of the Exchequer, George Osborne today (11 December 2014) announced the government will provide £4 million over four years to the new Virgin Money Foundation, which Virgin Money will match in the first year and consider increasing going forward, in a boost for charities and good causes in the north-east. He made this announcement as he launched the new Virgin Money Foundation while on a visit to Stockton-on-Tees.
The Virgin Money Foundation is the new charitable arm of Virgin Money. The government’s funding will come from the fines levied on banks for manipulating the London Interbank Offered Rate (LIBOR) financial benchmark.
Virgin Money has gone from strength to strength over the last few years, and is now a key challenger bank in the UK. Its ongoing success will allow it to increase the amount it contributes to charitable causes in the north-east over the long term through the new foundation.
This funding and the local knowledge and expertise of the Virgin Money staff will ensure the foundation can have an immediate and positive impact in the north-east of England, continuing the good work done to support this region by the Northern Rock Foundation, which announced that it may be closing earlier this year.
The Chancellor of the Exchequer George Osborne said:
I’m delighted to be able to support the new Virgin Money Foundation with £4 million of funding that we will provide from the fines levied on banks.
The Northern Rock Foundation made a considerable impact in the north-east in recent years, but sadly that has come to an end as a result of the deal made when Northern Rock collapsed.
It is only right that we use the fines from those who’ve demonstrated the worst values, to support the charitable causes in the north-east that demonstrate the best of British values on a daily basis.
Virgin Money Chief Executive, Jayne-Anne Gadhia said:
Virgin Money takes its social responsibilities very seriously in all of the communities in which it operates - but particularly here in the north-east. We are therefore delighted to be setting up a new, independent Virgin Money Foundation.
We are very grateful to the government for their generous contribution which will enable the new Virgin Money Foundation to make a positive and sustainable difference in the north-east.
The foundation’s first projects in the north-east will focus on making a positive difference for young people in the region. This will include creating the first youth zone for young people aged 8-19 and supporting The Community Foundation (Tyne & Wear and Northumberland).
- All money donated to the foundation will be invested into community projects.
- It is expected that the Virgin Money Foundation will become fully operational during the first half of 2015.
- The government’s funding will consist of £1 million per year over the next four years.
- Since it acquired Northern Rock plc in 2012, Virgin Money has provided support to the Northern Rock Foundation. However, in September 2014, the Northern Rock Foundation announced that it would be closing as it had been unable to raise sustainable funding from the private sector.