Following the recent Mansion House speech by chancellor Rachel Reeves, which included a number of commitments backing the new government’s pledge to double the UK co-op sector, the Treasury has issued several calls for evidence.
In her speech, Reeves announced the launch of a national council for the sector, alongside a new look at the regulatory environment and a review of the credit union common bond.
Tulip Siddiq, economic secretary to the Treasury, has written to the CEOs of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) requesting a report on the current mutuals landscape before the end of 2025.
In her letters to Nikhil Rathi, CEO of the FCA, and Sam Woods, CEO of the PRA, Siddiq wrote: “I am writing to you regarding the government’s commitment to unlock the full potential of the mutual and co-operative sector in the UK, and the importance of effective and proportional regulation in supporting this. As you will know, this is something I care about deeply and raised accordingly in my introductory meetings with both the FCA and PRA.”
Asking for reports on the co-op and mutuals sector, she added: “I am confident such a report, which I would appreciate before the end of 2025, would aid the government and regulators’ consideration of how best to support this sector to drive inclusive growth across the UK.”
With regard to the credit union common bond, the Treasury has issued a call for evidence, noting that “there are parts of the common bond which may merit review in order to help credit unions grow sustainably and ensure this aspect of the legislative framework for credit unions is fit for the 21st century“.
The call – which excludes Northern Ireland because it is a devolved matter – asks for views on whether there is grounds to change the various forms of common bond – such as locality, occupation or employer. It also asks for evidence on what impact any changes might have on individual credit unions, on the savings and loans market, and on credit union start-ups or transfers of engagement.
“Any potential reforms to the common bond will need to be carefully considered,” the Treasury adds, “as they could create significant changes to the way that credit unions operate in Great Britain. Any potential reforms will also need to be carefully considered against the regulatory environment for credit unions.”
Responses are encouraged from any individual or business which may be impacted by possible changes to the credit union common bond.
The document can be downloaded from gov.uk, or requested on 020 7270 5000, or by emailing [email protected]