Steve Brine says there is a "glimmer of hope" for the £5.7m Naomi House Children's Hospice had invested in Iceland as lobbying intensifies.
Deputy Labour leader, Harriet Harman, says the Government will do “everything it can” to rescue £5.7m placed by a Hampshire hospice in a collapsed bank.
The Naomi House charity invested around 37 per cent of its funds in the Kaupthing Singer and Friedlander bank.
The children’s hospice is now trying to retrieve the money, which has been caught in the Icelandic banking meltdown.
Mrs Harman was asked what the Government could do to help Naomi House when she visited Winchester last night for BBC Radio 4's Any Questions programme, held at Henry Beaufort School in Harestock.
Winchester City Councillor Barry Lipscomb, who represents Sutton Scotney where the hospice is based, asked the Mrs Harman what could be done.
She said: “When we’re talking about valuable services, like the hospice we’ve just talked about, the Government will want to do everything it can to help them.”
She said officials were heading to Iceland to see how much can be recovered from the banks, which the Treasury had previously regarded as safe. While she said each charity would need to be judged on a case by case basis, she pledged that Westminster would “not leave them on their own”.
She added: “We will do everything we can to help the charities. It’s not their fault, and we want to do everything we can to ensure the people who rely on their services do not lose out.”
Naomi House has also welcomed Mrs Harman’s pledge that Westminster would try to help.
Prospective Winchester MP Steve Brine, who attended the event on Friday evening spoke to Mrs Harman and argued the case for Naomi House.
He added; "I was grateful to get the opportunity to lobby a member of the Cabinet directly and I am pleased to report she was very keen to hear about the plight. I am also in regular contact with my colleagues in the Shadow Cabinet, including Oliver Letwin who was himself one of the guests on the Any Questions panel.
"Naomi House is not a local council - £5.7m means the world to this organisation and the families it serves. We will all do everything in our power to put continuing pressure on the Government to act."
Pictured; Chairman of the Trust which runs Naomi House, Cllr George Beckett and Cllr Barry Lipscomb with Steve Brine at the Foundation Stone Ceremony for Jack's Place, held on Monday 13th October 2008.