Building Societies Act 1986 (Amendment) Bill

Nicola Richards Excerpts

2nd reading
Friday 19th January 2024 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

I extend my thanks to the hon. Member for Sunderland Central (Julie Elliott) for bringing this Bill before the House. It is an honour to follow my hon. Friend the Member for Dover (Mrs Elphicke), who made a number of excellent points.

Across the country, building societies have a fascinating tale to tell about how they have become part of the social and economic fabric of the area. In my constituency of West Bromwich East, we have the headquarters of the West Brom, as it is now known, but myself and my constituents still refer to it as the West Bromwich building society. I must declare an interest: like many of my constituents, I have had a savings account with that building society since I was a child. I still have that little purple book.

The West Brom was originally called the Co-operative Steelworkers’ Society of West Bromwich. It was founded on St George’s day in 1849 by 20 local citizens who appealed for people to avail themselves of the advantages of the society and thereby become their own landlords. The initial gathering of founding members took place at the former Paradise Street Methodist chapel in West Bromwich, marking the establishment of one of the earliest building societies of its kind. It comes as absolutely no surprise to me at all that the people of West Bromwich East, just like those in the rest of the Black Country, have a strong history of being innovative and respecting hard work, independence and thrift. The society aimed to enable its members to acquire property from the fruits of their own honest industry and frugality, from a common fund raised by members’ contributions paid fortnightly, together with a facility to provide the safe deposit of money in large or small sums, as either temporary or permanent investments.

Over the years, the West Brom continued to grow and flourish amid periods of economic prosperity and a rise in demand for housing in the Black Country. It is worthy of mention that in 1881, a time when there were only 946 building societies across England and Wales boasting an average membership of 330 and receipts totalling just over £17,000, the West Brom stood out with over 2,500 members and an income exceeding £60,000.

In 1923, the Prime Minister Neville Chamberlain introduced the Housing Act 1923, which incentivised the private sector to engage in the extensive construction of housing, which was desperately needed. As a result, unlike its neighbouring areas, the town of West Bromwich experienced relatively low rates of unemployment during the depression, leading to strong support for building societies such as the West Bromwich. The West Bromwich has always been seen as one of the best managed and most successful societies. Its reputation for prudent lending and sound management enabled it to grow and consolidate its position during world war two and the post-war years, and to weather the storms of the early 1990s recession and property market slump.

Since its establishment, West Bromwich Building Society has undergone several relocations on West Bromwich high street before settling into its purpose-built headquarters at Providence Place in West Bromwich in 2016. One of the first constituency visits I made after I was elected to this place in 2019 was to the West Brom, where I was delighted to meet chief executive Jonathan Westhoff and learn about its enduring focus as a traditional building society. It provides a secure haven for its savers’ funds and enables individuals to achieve the ultimate goal of home ownership. As a mutual entity, those principles have guided the West Brom since its inception in 1849.

Like all building societies, the principal motivation behind every decision and course of action that the West Brom takes has been the wellbeing of its members. Through initiatives such as the community grant scheme and dedicated funding, the West Brom has significantly contributed to our local communities in West Bromwich, the Black Country and the wider west midlands. I am sure that many other hon. Members will have similar stories to tell about their local building societies in their constituencies—we have heard many already today. I am sure that many will continue to hold accounts with them.

An example of how much local people value West Bromwich Building Society is that last July, the Black Country Living Museum opened its own branch of the West Brom, which is set in 1949 and replicates the former premises in Cape Hill, Smethwick. I went there last summer, and it was amazing to see the beautiful old building, with the little yellow books. It is a great way to teach children about the history of our local community, which we are really proud of, and about financial incentives to save and home ownership.

The history of our local building societies and their success in supporting their members in home ownership show us that this model continues to endure and deliver for our constituents. But all such institutions must evolve. Given the illustrious history of many of our building societies, as I just outlined, it is only right that we continue to support them, as the Bill does. I am pleased that the Government are supporting it, as it will go a long way to supporting the nearly 23.4 million investors and 3.5 million borrowers who are members of the 42 building societies in the UK. I know that many people in my constituency and across the country rely on building societies for that most important function: providing their mortgage. Although significantly fewer people use building societies now than pre-1997, building societies still account for more than a fifth of mortgages. I have heard for myself just how vital a community asset these financial institutions are to so many people.

I know that the Building Societies Association supports the Bill and is especially pleased that the three types of funding outlined in it are to be excluded from the 50% member funding limit in the 1986 Act. Although the Bill will not make a drastic change to the operation of our building societies, it will allow them to raise a higher proportion of their funds from sources other than member savings. It has met with the approval of the financial industry, and it follows a Government consultation published in December 2021, the response to which was published in 2022. It received input from three building societies, with broad consensus that this is the right change to make, especially as it will allow more flexibility in accessing liquidity.

The Bill will allow building societies to continue to play their unique role and maintain the gap between how they and the banks operate. It will reassure consumers and the industry that we support this important part of our financial services industry, equipping building societies as they embrace the changing way we save, with increasing online options.

The example of West Bromwich is just one of many across our country. I look forward to continuing to work with the industry to do what I can to support it in this place. I am pleased that the Government have listened to the results of the consultation and are continuing to back our building societies. This Bill is the perfect demonstration of that.

Oral Answers to Questions

Nicola Richards Excerpts

Tuesday 15th November 2022 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

OnSide’s youth centres do an incredible job of transforming people’s lives, and I think young people in my constituency deserve that opportunity too. Will the Chancellor support my calls for the levelling-up fund to be spent on that important project in West Bromwich?

[John Glen]

I am aware of the outstanding bid from my hon. Friend’s constituency. I cannot reveal the outcome of the deliberations on that competitive process, but I will be looking carefully at her bid and liaising with other Ministers on the outcome of that round.

Oral Answers to Questions

Nicola Richards Excerpts

Tuesday 22nd June 2021 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

What recent estimate his Department has made of the number of furloughed employees moving back into work.

[Greg Smith (Buckingham) (Con)]

What recent estimate his Department has made of the number of furloughed employees moving back into work.

[The Chancellor of the Exchequer (Rishi Sunak)]

Between the end of January and the end of April, 1.5 million people left the furlough scheme. The most recent business survey from the Office for National Statistics estimates that the number of employees furloughed continued to decline after that point, to approximately 2 million at the end of May, which is the lowest level reported by the survey since June last year. At the same time, the number of payrolled employees has increased for six consecutive months. I believe that the coronavirus job retention scheme is striking the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that incentives are in place to get people back to work as demand returns.

[Nicola Richards]

Does my right hon. Friend recall that at the start of the pandemic, many commentators feared that it would lead to unemployment on an unprecedented scale? Has he estimated that impact of his furlough scheme on protecting jobs?

[Rishi Sunak]

My hon. Friend makes an excellent point. The furlough scheme has supported more than 11.5 million jobs since the start of the pandemic, and she is right to say that at that point, forecasts suggested that unemployment would peak at around 12%. Those forecasts now show unemployment peaking at half that level, which means 2 million fewer people losing their jobs than previously feared. Our unemployment today is lower than that in Italy, France, Spain, Canada, the United States and Australia, and it shows that our plan for jobs is working.

Additional Covid-19 Restrictions: Fair Economic Support

Nicola Richards Excerpts

Wednesday 21st October 2020 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

It is a pleasure to speak in this debate, because it is an important one. It is important that people understand the level of economic support available for their area. More than £200 billion has been put there to protect jobs, incomes and businesses.

The fact that the Opposition never want to talk about the unprecedented package of financial support measures that the Government have already piled into all areas of the country is extremely telling. Perhaps that is because the Government’s record on helping the most vulnerable get through this epidemic is outstanding. When we look at the job retention scheme, the job support scheme, the business grants, VAT deferrals, interest-free loans, help with mortgages and much more, it is difficult to argue that this Government have not economically supported our communities, but I agree that they must continue to do so.

I am pleased that packages of financial support are being drawn up for areas hit by the toughest restrictions. If someone’s business is legally required to shut because of the tier system, it is absolutely right that they should be entitled to financial support. It is interesting to watch the Labour party now attempting to paint itself as being business-friendly. Under the Opposition’s previous leader, the right hon. Member for Islington North (Jeremy Corbyn), they were anything but pro-business: just look at their last manifesto. For them now to claim to be the saviours of business across the country during the epidemic is laughable.

What did the former shadow Home Secretary tell Newsnight about the Leader of the Opposition? He has moved his position on remain. He has flip-flopped on Brexit. He has flip-flopped in his support for businesses and he has flip-flopped on covid. He cannot decide whether he wants a national lockdown or whether he wants to know when lockdowns will end. The only thing he has been consistent in is his ability to use hindsight. This from the right hon. and learned Gentleman who stood at last December’s general election on a specific manifesto commitment to impose the biggest tax hikes on British businesses in living memory.

I want us to be backing businesses in West Bromwich East and across the country—the wealth creators who drive our local economies and deliver jobs and prosperity for people. The covid crisis has threatened all that, but I know that we will bounce back when we level-up communities such as mine, which has been let down by the Labour party. While we do not want people to be relying on the welfare state—we want people in jobs providing for their families—it is precisely because of the generous nature of the increased UC threshold that people have been protected during the pandemic.

I pay tribute to West Bromwich jobcentre, which has done a great job in making sure that all those in West Bromwich East who needed to access UC have been able to do so. I pay tribute to the Secretary of State for Work and Pensions, who has done a fantastic job in securing that. I have been saying throughout the pandemic that this is the time to pull together and play our part in supporting our neighbours. I am proud that the Chancellor has so far stepped up to the challenge, and I have every faith he will continue to do so.

The Economy

Nicola Richards Excerpts

Thursday 24th September 2020 Commons Chamber

[Rishi Sunak]

The hon. Lady is absolutely right: it is a tragedy that 700,000 people have already lost their jobs and many more will. Our focus should be, and is, on finding fresh, new opportunities to provide them with the security that they and their families so desperately need. That is why we have provided incentives for companies to take on new staff through our apprenticeship scheme. We have also provided incredibly intensive support through the Department for Work and Pensions, through a doubling of the number of work coaches and greater wraparound support to help all of those people mentioned to plot their course and chart a better future for themselves.

[Nicola Richards (West Bromwich East) (Con)]

The new jobs support scheme rightly focuses on protecting employment and preserving viable jobs during a period of depressed demand. Businesses and workers in West Bromwich East will be extremely grateful for that. Does the Chancellor agree that it is also fair that the scheme targets those businesses that need it most, and will he set out how the scheme is deliberately targeted in that way? Will he also join me in visiting the incredible Red Lion Desi pub, to hear how it has benefited from the eat out to help out scheme?

[Rishi Sunak]

My hon. Friend is absolutely right about the nature of our support at this phase in our recovery. In a couple of different ways, this support has evolved in the way she said. It is targeted at those larger businesses that really need it, whose revenue has declined, and it is targeted specifically at protecting and supporting viable jobs—those jobs where there is work to do but the company is facing a period of repressed demand. This is a scheme that will make an enormous difference to those people, but in a targeted and effective way.

Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Nicola Richards Excerpts

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

I echo the comments of my hon. Friend the Member for Guildford (Angela Richardson). Within my own constituency we of course have the headquarters of West Bromwich Building Society, which was originally called the Co-operative Steelworkers’ Society of West Bromwich. It was founded on St George’s day in 1849 by 20 local citizens who appealed for people to

“avail themselves of the advantages of the society, and thereby become their own landlords.”

I must declare an interest: since I was a child, I have held a savings account with the society in its modern form.

The founding members first met at the former Paradise Street Methodist chapel. It was one of the earliest societies of its like to be set up. It comes as no surprise to me at all that the people of West Bromwich East, just like the wider black country, have a history of being innovators and respecting hard work, thrift and, of course, independence. The society aimed

“to enable its members to acquire property by the fruits of their own honest industry and frugality from a common fund raised by members’ contributions paid fortnightly”,

together with a facility to provide the

“safe deposit of money in large or small sums as either temporary or permanent investments.”

Throughout the years, the West Bromwich continued to grow during stronger economic times and the need for housing in the Black Country. I think it impressive that in 1881, while there were only 946 building societies in the whole of England and Wales, with an average membership of 330 and receipts of just over £17,000, the West Bromwich had more than 2,500 members and an income of more than £60,000.

In 1923, former Conservative Prime Minister Neville Chamberlain brought in the Housing Act 1923, paying the private sector to build, build, build. This meant that because West Bromwich as a town did not suffer as much unemployment as neighbouring areas during the depression, building societies such as the West Bromwich were well supported.

The West Bromwich has moved around a few times since its inception, and moved to the new purpose-built headquarters at Providence Place in 2016, which I had the great pleasure of visiting just a few weeks back. Its headquarters are a little less busy than they would usually be, but it was great to meet chief executive Jonathan Westhoff and hear about the West Bromwich’s focus, which remains that of a traditional building society—providing a safe home for savers’ money, allowing people to buy their own homes. As the West Bromwich is a mutual, these principles have shaped the society since it was first formed. The driving force behind any decision making and direction since 1849 for the West Brom has been to look after the interests of its members. The West Brom has done so much to give back to our local community through its community grant scheme and tireless funding.

Finally, moving on to the Bill, perhaps a point of debate should be whether the Mutuals’ Deferred Shares Act 2015 already gives co-operatives the means to issue redeemable shares, and so perhaps the Bill is not necessary in its current form. I thank the hon. Member for Cardiff North for bringing the Bill to the House today.

Protection of Jobs and Businesses

Nicola Richards Excerpts

Wednesday 9th September 2020 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

The Treasury paid out nearly £14 million in business grants in my constituency, instant cash that was vital to keeping businesses going during a situation that none of us wanted or could have foreseen. I must also mention the fantastic eat out to help out scheme. It has been widely welcomed by my constituents. Pubs and restaurants from Great Barr to Greets Green and from Friar Park to Newton have taken advantage, serving up 91,000 discounted meals in total across the constituency. In August, I had the pleasure of visiting the Sportsman, the Yew Tree, the Island Inn and the Cricketers Arms, to name just a few, and of course, I took my team to the amazing Red Lion.

Everywhere I went, the Chancellor’s support was hugely appreciated, and 13,400 jobs in West Bromwich East were supported by the furlough scheme. Over the summer recess, I visited Rimstock, Guest Truck and Van, and Sheldon Clayton Logistics—all brilliant businesses in West Bromwich East that benefited from the furlough scheme. It was a genuine lifeline for many businesses. However, a phasing-out of the furlough scheme is ultimately the right thing to do now. The scheme has rightly supported millions since it was introduced, but we cannot continue to run a labour market where people’s jobs are completely dependent on the state making them viable. I have listened with great interest to the Opposition, and it is not clear which sector they want to support, how long for or at what cost. I fear that the shadow Chancellor did not know either.

The Opposition seem to have also neglected to mention that it is not just in this country that support measures are coming to an end this autumn. Italy, Japan, the Netherlands, Spain, Canada, Denmark, Norway, New Zealand, Sweden and Switzerland have all announced that their equivalent wage support schemes will be phased out over the coming months. The Bank of England’s chief economist hit the nail on the head when he said that extending the furlough scheme meant

“prolonging the inevitable in a way that probably doesn’t help either the individual or the business.”

He is right.

We need to turn our attention to providing new opportunities for people. We must bring the public finances back under control. I am a big fan of the Chancellor’s kickstart scheme, and we need to go further for young people. We are looking at an entire generation of young people who have had their early career stalled through no fault of their own. That is where the Government need to step in, and it is also why I support the Prime Minister when he says that young people need to get back into the office because it is they who benefit from peer support, guidance, role models and progression.

[Rob Roberts (Delyn) (Con)]

I wonder, having listed all the countries that my hon. Friend did just now, whether she would take issue with the Opposition’s mention of France, which has a youth unemployment rate of nearly 19.5%. Should we therefore not really take any lessons from the French on how to run a successful jobs market?

[Nicola Richards]

I agree with my hon. Friend’s assessment of the situation.

I have a constituent who runs a firm called Sandwell Pest Control Services which is already looking to take on a young person in an administrative role through the kickstart scheme. That is just one example of the urgency many businesses are feeling to get going again. Last December, the people of this country came out en masse to reject the Opposition’s vision for the economy. The British people ultimately know that, as a hero of mine once said,

“eventually you run out of other people’s money”.

In West Bromwich East we want sound public finances. The Government stood up for jobs and our economy when it was needed the most, and they will drive forward our recovery from here in a responsible way that brings the public finances under control through competent Conservative policies.

Future Relationship with the EU

Nicola Richards Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

The hon. Gentleman is right that there are challenges, but those challenges are known and a huge amount of work is going on to ensure that we can address them. We will be saying more in the coming weeks about those issues and on our border operations.

[Nicola Richards (West Bromwich East) (Con)]

We have heard that Germany thinks it can pick and choose which laws it complies with, yet Mr Barnier still expects us to be subordinate to EU laws. The Minister said that there will be implications for the EU. Does she agree that this not only undermines the negotiations but the EU project as a whole?

[Penny Mordaunt]

The judgment of that court clearly raises issues that are for the EU to consider, and not for me at the Dispatch Box. The key point that my hon. Friend outlines is that we are a sovereign equal in the negotiations. Once the EU accepts that and looks at the negotiations from that perspective, we can make some progress on those remaining tough issues.

Public Health England Review: Covid-19 Disparities

Nicola Richards Excerpts

Thursday 4th June 2020 Commons Chamber

[Kemi Badenoch]

The Government have introduced an unprecedented scheme of packages to help all those people financially impacted by covid-19. As the hon. Gentleman knows, we are using average earnings data based over the last three years. That does mean that some groups are impacted, but because of how Her Majesty’s Revenue and Customs collects information, that is not necessarily something that we can address. That is why we have other schemes in place, which people hopefully should be able to access.

[Nicola Richards (West Bromwich East) (Con)]

The recent report does not include recommendations for people with underlying health conditions or by employment type. Will the Minister commit to looking into those factors further so that we can properly address the causes of the disproportionate effects of covid-19 on BAME communities?

[Kemi Badenoch]

Yes, is the short answer. We can look at that.

Oral Answers to Questions

Nicola Richards Excerpts

Tuesday 24th March 2020 Commons Chamber

[The Chief Secretary to the Treasury (Steve Barclay)]

The right hon. Gentleman will know that school budgets have been allocated, so the schools already have that money to spend; that will not change. The announcement that the Chancellor has made about the PAYE system is about supporting people through that mechanism. If the right hon. Gentleman has other proposals, I am happy to engage with him to discuss them further.

[Nicola Richards (West Bromwich East) (Con)]

T5. I welcome my right hon. Friend’s world-leading package of support to businesses. There are many charities and community care providers in West Bromwich East, including Sandwell Community Caring Trust, which are all working extremely hard to protect the vulnerable. I thank them, and all the teachers and frontline staff in my constituency. Will he confirm that all charities that pay through PAYE will be eligible for the scheme and relief package?

[Rishi Sunak]

I thank my hon. Friend for her support, and join her in paying tribute to Sandwell Community Caring Trust, which we will be relying on through this difficult period. I can confirm that charities are eligible for the job retention support programme. Further to that, we have allocated extra funding to the Ministry of Housing, Communities and Local Government to provide money to local charitable or caring organisations, especially to help those we are attempting to shield—the most vulnerable—in order to protect them against the effects of the coronavirus.