Building Societies Act 1986 (Amendment) Bill

Lord Holmes of Richmond Excerpts

2nd reading
Friday 10th May 2024 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in Second Reading. In doing so I declare my financial services interests as set out in the register as adviser to Ecospend Ltd. I fully support the Bill and congratulate my friend the noble Lord, Lord Kennedy, on bringing it. He, as much as anyone in this House, has backed mutuals, friendly societies, credit unions and all those organisations doing so much for so many people right across our country. It was also a pleasure to have the pilot of the Bill then followed by a pilot speaking on the Bill. I am going to keep my feet firmly on terra firma and stick to the financial facts, because in no sense is this a minority matter: 25.8 million of us avail ourselves of building society accounts and services, and they have assets racing towards £400 billion.

If we are talking about levelling up in this country, we should also talk about levelling the playing field for building societies, which do such good work in all our communities. In saying that, I thank the Library for its excellent briefing and the Building Societies Association for its briefing and for everything it does to represent this important part of our economy and society. This Bill will look not only at the capital requirements and some important corporate governance matters, but in doing that it will increase scale, growth and competition across our financial services sector. Those are three excellent elements at any time but are critical when we look at the current macroeconomics not just of the UK but internationally. I am delighted to support this Bill and its provisions. It also updates things by enabling virtual, real-time participation in AGMs. It aligns very much with what other countries have been able to enjoy for many years.

I have just three questions for my noble friend on the Front Bench. First, when will the secondary legislation be brought into being? The Explanatory Notes say “as soon as possible”—does that mean before the summer? It certainly sounds better than “in due course”. While the Bill itself is critical, it is as critical that we get the secondary legislation through in a speedy fashion to enable the full impact of these changes to be felt by people up and down the country, and indeed the institutions themselves.

Secondly, what is the Government’s current position on mutuals in general? So many elements of our society—so many economic and social issues—can be addressed by an increased focus on and enablement of mutual structures right across society. What is their current work on mutuals across the piece? They were extraordinarily influential when they first came into being and their potential impact could never be more needed than in the time we are currently experiencing.

Allied to our discussions this morning, have the Government considered a potential mutualisation of the Post Office—obviously once we are through all the current issues and the liabilities therein? Does my noble friend not agree that a mutualised structure could work incredibly well for such an organisation—a brand that has been part of our society and high streets for over half a millennium? We need a positive Post Office. We need to support all those excellent sub-postmistresses and sub-postmasters, up and down the country. What sensational new chapters could be written for the Post Office and the communities in which it operates? Mutualisation could be at the heart of that.

So I fully support the Bill. I think it will have a positive impact in short order. Scale, growth and competition will deliver economic, social and psychological benefits, increase financial inclusion and well-being and drive possibilities for individuals and small entities right across the United Kingdom. I wish it swift speed into statute.