Financial Insitutions: Membership
The question
To ask the Chancellor of the Exchequer, what steps her Department is taking to promote membership of (a) credit unions, (b) building societies and (c) mutual banking institutions.
Answered by Rachel Blake
The Chancellor set out her priorities for the sector at Mansion House 2024 and HM Treasury is delivering that multi-year programme of work to support the manifesto commitment to double the size of the sector. This includes:
- Launching a call for evidence on the credit union common bond in Great Britain. In March 2026, the government announced full details of these growth-focused reforms, and the government is now taking forward legislation in the Financial Services and Markets Bill.
- Confirming the government will make further updates to the Building Societies Act 1986, including to the funding limit. Legislation to modernise the Act will be laid before summer recess.
- Asking the Financial Conduct Authority and Prudential Regulation Authority to produce a report on the mutual sector landscape by the end of 2025, which was published alongside a sector roundtable in Rochdale in December 2025.
- Welcoming the industry-led Mutual and Co-operative Sector Business Council, which has helped develop sector growth plans and mutual and co-operative workstreams.
- Confirming reviews of the legislation underpinning co-operatives, community benefit societies, and friendly societies through independent Law Commission reviews. These are expected to complete in 2026.
Additionally, in the Financial Inclusion Strategy, the government announced a £30 million Credit Union Transformation Fund for England.
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