Government closes Libor funding scheme

Payment-Fine-Currency-Money-700.jpgThe Government has closed its Libor charity funding scheme after five years, it was announced in Wednesday’s Budget.

In 2012 the Treasury announced that the proceeds from Libor fines levied on the banking industry for manipulating the Libor rate would be used to support armed forces and emergency services charities.

Last year, former Chancellor George Osborne said: “It is right that funding from those in the banking industry who demonstrated the worst of values goes towards people who display the very best of British values.”

In the Autumn Budget the Government committed a further £36m of banking fines over the next three years to support the causes.

“This completes the Libor Charity Funding scheme, bringing the total of funding committed since 2012 to £773m,” the Budget policy paper says.

Earlier this year, Bank of England governor Mark Carney called for an alternative to Libor based on market transactions not banks’ judgements.