SIR Richard Branson revealed this week that he is happy to let his staff take as much holiday as they like.

Confirmation that the region’s biggest charity, the Northern Rock Foundation, is to be wound down showed the tycoon’s generosity towards North-East good causes has its limits.

We welcome the pledge from Virgin Money, which inherited the foundation when it bought the Newcastle-based bank from the government, to invest £1m next year in regional youth charities. These are tough times for fund raisers and Virgin’s ongoing support for our region is a good thing.

Nevertheless, the demise of the foundation is a matter of regret.

The generous covenant which ensured five per cent of Northern Rock’s annual profits were reserved for the community has helped plough £200m into regional charities and good causes over almost two decades.

The collapse of the Rock, heralding the deepest recession for a generation, changed the landscape for the foundation and for charity funding in general.

In May, Sir Richard offered £1m of the £4ma- year the foundation needed to continue its work, and urged the board members to “get off their arses” and find other local backers willing to make up the shortfall.

That always looked unlikely.

After Virgin Money and the foundation talked in more detail it became clear that Sir Richard’s crudely-worded clarion call was a non-starter.

It is hoped that Virgin Money will stick to its original offer and donate £1m not just for next year, but for the next five years, to demonstrate a long-term commitment to the North-East.

The bottom line is that North-East community projects will be £3m-a-year worse off once the foundation distributes its remaining funds.