Oral Answers to Questions
Chris Kane Excerpts(6 days, 14 hours ago)
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Andrew Western
The hon. Gentleman tempts me to encroach on what are legitimately policy questions for the Scottish Government. The policy of this Government is clear and set out in the Bill, but I am grateful to the Cabinet Secretary for Social Justice for continuing to work with me constructively to make the Bill as workable as possible, with alignment where possible, such that if we end up diverging we are still able to ensure that this Parliament does everything it can, and the Scottish Government do everything they choose to do, to bear down on fraud and error.
Chris Kane (Stirling and Strathallan) (Lab)
Does the Minister share my surprise that a Member of the party responsible for more than a decade of rising poverty, record benefit delays, and billions lost to fraud and error is now suddenly concerned about tackling that? Across the House, while we recognise the need to tackle fraud in our welfare system, we should also recognise the huge issue with tax avoidance and evasion—as recently highlighted by the Public Accounts Committee—which requires significant attention.
Andrew Western
I very much agree with my hon. Friend. This Government are determined to bear down on tax evasion with 5,000 additional investigators. Wherever we see people ripping off the public purse, whether that is defrauding the Department for Work and Pensions or abusing the tax system, we are determined to bear down on them, and that is what we will do.
Credit Unions
Chris Kane Excerpts(1 month, 3 weeks ago)
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Chris Kane (Stirling and Strathallan) (Lab)
It is a pleasure to serve under your chairmanship, Mr Twigg. I congratulate my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) on securing this important debate.
At a time when we are all looking for practical ways to support our communities, a simple but powerful action stands out to me in relation to credit unions: for public bodies to support credit unions not just by promoting them, but by banking with them. When I was leader of Stirling council, I saw at first hand how prudent financial management rightly led councils to place the bulk of their reserves with established banks and large institutions. That approach is, of course, sound and responsible, but allocating even a very small proportion of those funds—small by council standards—to a credit union could have a disproportionately positive impact on the credit union and the community it serves.
Credit unions are community-based, member-owned financial institutions that offer affordable loans, promote savings and provide an ethical alternative to high-cost lenders. I have seen their real-world impact in my constituency, where they help families to avoid exploitative borrowing, build resilience and stay afloat during hard times. However, many credit unions operate at the margins of the financial system and struggle to scale. Local authority deposits, even modest ones, would help with the stability and capital that credit unions need to grow, and would send a powerful signal to the public that credit unions are valued, supported and used by institutions. Depositing local authority funds in a credit union could also deliver modest returns while maintaining strong safeguards for public funds, because deposits are protected under the Financial Services Compensation Scheme. It would be a secure, responsible option that also delivered social value.
Every pound placed in a credit union is a pound that can be recycled into low-interest loans for local people and small businesses. The money does not disappear into a distant financial centre; it stays local and supports the very communities that we are elected to serve. This approach would align with many local authorities’ wider goals: it would help to tackle poverty, support inclusive economic development and contribute to building community wealth. It would also align with wider goals across the public sector, including in the UK Government.
I urge the Minister to consider what more central Government can do to overcome the barriers to this practice in the public sector and by local authorities, including through updated guidance, best practice examples and formal recognition of the social value that local authority deposits in credit unions can generate. We need to look at the barriers to public bodies placing money in credit unions without changing the broader scope of member ownership. Even very modest deposits in credit unions—modest by departmental or council standards—can work harder and go further when invested locally. By supporting credit unions, we invest in people’s lives, in communities and in the resilience of our local economies.