Britain Plans ‘Big Society Bank’

As his government embarks on austerity budget measures, British Prime Minister David Cameron is proposing a “big society bank” that will distribute money from dormant bank accounts to charities, but the plan is netting criticism by some who say that it is only masking severe cuts many charities across the nation are facing, writes the Financial Times.

The British Banking Association estimates there is probably about $608.8-million in dormant accounts, but Mr. Cameron’s advisers warn that reluctance from the banks and the time-consuming process of tracking down the accounts’ owners may mean that only a small part of the sum may be available in time for the debut of the big society bank, which is being planned for April of next year. Mr. Cameron hopes up to about $152.3-million will be reserved for charities providing public services such as job training and substance-abuse treatment.

However, critics say that the plan is drawing attention away from significant budget cuts that charities are confronting.

(Free registration is required to view this article.)