Financial Services: Mansion House Speech

Katrina Murray Excerpts

Monday 18th November 2024 Commons Chamber

[Tulip Siddiq]

Our regulators do a very good job, and we are lucky to have them, but we will hold them to account. When the Chancellor talked about risk taking, she was saying that the post-financial crisis regulatory changes created a system that sought to eliminate risk, but which has gone too far and led to unintended consequences. For example, the certification regime has helped to improve standards and accountability, but some elements have become overly costly and administratively burdensome. That is what we are looking at. Getting rid of the regulators is not the way to grow the economy. Holding them to account, and considering how we increase risk taking in our system, is the way in which this Government will approach things.

[Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)]

As a long-term member of the NHS Scotland credit union, I know the importance of having community and workplace-based savings and lending provision, which is much more accessible for people on low incomes than buy now, pay later. However, it has become much more challenging for the sector to operate beyond the common bond. What is the Minister doing to ensure that credit unions are able not only to compete with the wider financial sector, but to thrive in those circumstances?

[Tulip Siddiq]

I absolutely share my hon. Friend’s enthusiasm for credit unions—I have visited those in my constituency several times and know what good work they do. We have made clear our strong support for the mutual sector. We recognise the value that credit unions bring to their members in local communities, including in her constituency. The Chancellor launched a call for evidence on reforming the credit union common bond during the Mansion House speech last week. We want to understand whether reform is needed in that space to help credit unions to grow substantially. Once we have completed the call for evidence, we will consider how much of that reform we can take forward as a Labour Government.