Building Societies Act 1986 (Amendment) Bill

Baroness Laing of Elderslie Excerpts

Report stage
Friday 19th April 2024 Commons Chamber

[Julie Elliott (Sunderland Central) (Lab)]

I beg to move amendment 2, page 2, line 9, leave out from “(9B)” to end of line 11 and insert

“may not be made unless a draft of the instrument has been laid before, and approved by a resolution of each House of Parliament.”

This amendment changes the procedure that applies to an SI containing regulations under new subsection (9B) of section 7 of the Building Societies Act 1986 (inserted by the Bill) so that it is subject to the affirmative procedure.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss amendment 1, page 2, line 10, leave out from “to” to end of line 11 and insert

“approval by both Houses of Parliament”.

[Julie Elliott]

Thank you very much, Madam Deputy Speaker. The variety of Bills is in the strange nature of this place. We are going from the warm and fluffy Bill that we have just discussed, which I am delighted has received its Third Reading, to what is rather a dry Bill —but an important one none the less.

Amendment 2, which stands in my name, changes the procedure that applies to statutory instruments relating to proposed new subsection (9B) to section 7 of the Building Societies Act 1986. They will be subject to the affirmative procedure, rather than to the negative procedure as the Bill currently states. I tabled the amendment after talking to colleagues on both sides of the House. On reflection, it provides for closer scrutiny of the potential changes that could be made via secondary legislation under the Bill. The amendment does not change the immensely positive effect that I believe the Bill will have on the building society sector by bringing it in line with current practices, nor does it change the Bill’s aims, which will, in my view, enormously improve opportunities for people to get on the housing ladder. The result of the Bill will be a better landscape for first-time buyers, and the amendment just improves scrutiny.

--- Later in debate ---

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (Con)]

I place on record my thanks to the hon. Member for Sunderland Central (Julie Elliott) for bringing a pragmatic and important Bill to the House, and I give it my full support today. As always, she works assiduously in making lives better for people across the United Kingdom and in her constituency, and she works in an extremely positive manner across parties to achieve her aims, and I thank her for that, too.

As others have mentioned, building societies are extremely important to the fabric of the financial institutions in our constituencies. I make regular visits to the Nationwide Building Society branch in East Kilbride, as I did just a few months ago. Like my hon. Friend the Member for Milton Keynes North (Ben Everitt), I was reassured to find out that my local branch had no plans to close and was thriving in the community. Many people were coming in to speak and to chat, as well as for socialisation and reassurance regarding finance and debt and how to engage with the new digital banking sector. The reach-out into the community is second to none.

I was impressed by that, particularly as I have had terrible news from East Kilbride just this week that the Royal Bank of Scotland is closing its branch there. That follows on from the bad news just last month that the Bank of Scotland is closing in Strathaven and Lesmahagow, leaving those communities without essential banking, particularly as those branches are the last banks in those local communities. It is distressing for the residents. I am pleased to be able to raise their concerns today and to praise Nationwide for the work it is doing and its assurance that it wants to be at the heart of our community for the foreseeable future.

I declare a personal interest, as my first mortgage was with that building society. I did not know an awful lot about finance or mortgages at the time, but Nationwide took the time to go through the different options with me, and I felt reassured by the manager. Having that face-to-face contact is so important. For first-time buyers who are not sure about the steps to take in getting their first mortgage—it is such a pivotal part of our life journey—these institutions play such an important role in our local communities.

I also place on record my thanks for the work that Nationwide is doing on mental health. I am part of the Money and Mental Health Policy Institute, chaired by Martin Lewis. We know that there is a huge link between mental health and finance. Debt, in particular, correlates with people’s mental health spiralling downwards, and we need to make sure we address those issues through all our banking institutions.

As has already been said, this is an important Bill, which places building societies on par with banks for corporate governance and solvency, and will keep them competitive and at the heart of our communities for the future.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister.