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Financial Institutions

Question for HM Treasury

UIN 8051, tabled on 20 July 2015

To ask Mr Chancellor of the Exchequer, what support the Government is providing to (a) mutual savings banks and (b) credit unions in (a) the UK, (b) Scotland and (c) Coatbridge, Chryston and Bellshill constituency.

Answered on

7 September 2015

At the Summer Budget the government announced that savings banks established under the Savings Bank (Scotland) Act 1819 will benefit from the same £25m carried-forward loss allowance for Corporation Tax as the building society sector. This will be backdated to 1 April 2015 and actioned through the Finance Bill 2015.

The Coalition Government took significant steps to support the credit union movement in Great Britain. These included increasing the maximum interest rate that credit unions can charge on loans from 2% to 3% per month; investing £38m in the sector through the Department of Work and Pensions’ Credit Union Expansion Project and launching a Call for Evidence which allowed all credit unions, regardless of size or influence, the opportunity to contribute their vision for the future of the sector to the wider debate. The Government is committed to continuing

to support the credit union movement in making financial services more accessible.

Answered by