Cooperatives and Credit Unions
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the technical differences between co-operatives and credit unions which justify excluding credit unions from the exemption from audit requirements available to smaller co-operatives under the Co-operative and Community Benefit Societies Act 2014; and whether the Government plans to review this distinction in light of forthcoming recommendations from the Law Commission’s review of the Act.
Answered by Emma Reynolds
The Government recognises the important contribution of co-operatives and mutuals to the economy, serving local communities around the country and ensuring the UK has a diverse business sector with their model of shared ownership. The Government is committed to unlocking the full potential of the mutual and co-operative sector to support inclusive growth.
Co-operatives are diverse organisations that span a variety of different sectors. Credit unions are financial co-operatives which offer savings and loans to their members. As deposit-takers, credit unions are subject to specific regulatory requirements.
The Government is funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014 to help ensure that co-operatives legislation is meeting the needs of this sector. This review will consider ways to update and modernise the Act. The Government will carefully consider the findings of this review to understand whether reform of the legislation is needed to ensure these businesses are supported to grow and succeed into the future.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →