Financial Services Reform

Kieran Mullan Excerpts

Wednesday 16th July 2025 Commons Chamber

[Emma Reynolds]

Absolutely. This is something that the Chancellor and I—and indeed the Business Secretary and the Business Minister—are passionate about, and we are making sure that we deliver on our manifesto commitment to double the size of the sector. We have asked the financial services regulators to report by the end of the year on what more they can do to support the growth of the sector. We are supporting the industry-led Mutual and Co-operatives Business Council, which is chaired by the chair of Nationwide, Kevin Parry, and we have recently concluded a call for evidence on the credit union common bond, which is another form of mutual. We will be setting out our response on that issue in due course.

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

Given the news on inflation today, along with the ongoing increases in unemployment and the downgrading of growth forecasts, it is quite right that this Government are looking for other ways to stimulate growth. One of the reasons being put forward for these reforms is the poor rates of return on ordinary bank accounts and savings accounts, but what my constituents want are just decent rates of return on ordinary savings accounts. Martin Lewis and others have pointed out that that market remains stubbornly resistant to passing on interest rate savings and offering competitive rates. I understand why the Government want to encourage people to invest in other types of savings, but what plans do they have to tackle the poor rates of return that people are getting from their ordinary savings and bank accounts?

[Emma Reynolds]

I am engaging with Martin Lewis, who is a doughty champion of consumers across the country. I say to the hon. Member that, due to the consumer duty, banks and other providers have a duty to ensure that they deliver the best outcomes for their consumers, but I note what he has said.