Financial Services and Markets Bill [Lords]

Robin Swann Excerpts

Tuesday 10th November 2026 Commons Chamber

[Andrew Pakes (Peterborough) (Lab/Co-op)]

This is my first speech in this House since being appointed as the Government’s co-operatives and mutuals champion, a role that speaks to my purpose in public life and gives me the responsibility of championing the co-operative and mutuals sector across Parliament and Government. It is a pleasure to contribute to a debate with my right hon. and learned Friend the Economic Secretary sat on the Front Bench; I know she is a champion for the sector in a diverse and resilient financial market. In the spirit of cross-party consensus that we have had this evening, I also pay tribute to the hon. Member for Wyre Forest (Mark Garnier), who I know secretly carries a co-operative dividend card in his wallet and is a champion of the sector as well.

I am proud that this Government have an ambitious plan to double the size of the co-operative and mutual economy, and this Bill will contribute to that ambition. I am proud to take on the role that I have been given, because mutuals, building societies and credit unions embody a simple but powerful idea: that financial services should work in the interests of the people who use them. They are owned by their members, rooted in their communities and focused on long-term value rather than simply short-term shareholder returns.

On taking the role last week, my first meeting was with the boards and executives of building societies from across the country, and this morning I met with Royal London. I put on record my thanks to the boards of all our building societies and credit unions, and the staff who work for them and support them in their endeavours, providing growth in every postcode already. We see people like this working in our building societies and mutuals across the country.

We have seen this movement in Peterborough, just like in many other cities. In 1954, the Co-operative Permanent Building Society opened its office in our city. More than 70 years later, now as Nationwide, it continues to serve and help people to save, buy a home and access trusted financial advice. That long-term commitment to communities is exactly why building societies and the wider mutual movement remain such an important part of our economy and financial services. It brings somewhere to save, somewhere fair to borrow and somewhere that understands the communities that the institutions serve.

[Robin Swann (South Antrim) (UUP)]

I am a director of Slemish ń tha Braid Credit Union. Will the new champion meet me, the Irish League of Credit Unions and the Ulster Federation of Credit Unions to ensure that the support he is talking about covers the whole United Kingdom and all the savers who use those services?

[Andrew Pakes]

One of the delights of my role will be juggling my diary to meet all the brilliant different mutual movements and community banks and assets across everywhere represented in Parliament—I will be delighted to do so.

In particular, I welcome reforms to the credit union common bond. By increasing the membership limit, we can help credit unions to reach more communities, widen access to affordable credit, and help more people to build savings and financial resilience. At a time when many families are still feeling pressure on household budgets, access to fair and affordable lending matters more than ever. Credit unions provide a trusted alternative to high-cost lenders and, as other Members have said, they play an important role in tackling financial exclusion.

The Bill also gives us an opportunity to recognise the contribution that building societies make to banking access. Across the country, many banks have reduced their physical presence, yet building societies have continued to invest in local services and maintain branches. Evidence cited by the Building Societies Association shows that building societies now account for around a third of UK banking branches, operating more than 1,400 branches nationwide. That commitment should be recognised and encouraged, but any future banking access requirements must also be fair—building societies cannot be expected to become the catch-all provider for responsibilities abandoned by others.

We need a framework that reflects local need, supports innovation and ensures that mutuals are not penalised for continuing to serve the communities that others have left behind. I echo comments made by my hon. Friend the Member for Harrow West (Gareth Thomas) and the Chair of the Treasury Committee, my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), that the rules governing capital and mutuals need to be looked at as well, so that we do not leave the mutual movement behind as we modernise and reflect on financial services as a whole.

More broadly, regulation should reflect the distinct nature of mutual organisations. We can maintain strong consumer protections while ensuring that the rules are proportionate and support growth, competition and innovation. Mutuals are not asking for special treatment—they are asking for a level playing field of access and role.

The test for this legislation is straightforward: will it help people to save, borrow and own a home? Will it support access to financial services in every community? Will it enable mutuals, building societies and credit unions to grow and serve more people? Mutuals, building societies and credit unions are a vital part of the future of our diverse, resilient and community-focused financial services sector, and I hope the Minister will ensure that the legislation helps them to grow, to serve more people and to continue making a difference in communities such as mine in Peterborough and those of the hon. Members we have heard from this evening.

[Robin Swann (South Antrim) (UUP)]

I want to pick up on the Chancellor’s comments in opening the debate, when he said that he wanted to continue moving the Bill in “the right direction” with a collegiate approach across the House. I intend to table an amendment to the Bill on one specific issue, which builds on the work of Baroness Hoey of Lylehill and the British Insurance Brokers’ Association. It relates to an ongoing campaign of mine to tackle the rising and disproportionate cause of car insurance costs across Northern Ireland.

The amendment will seek to include claims management companies in Northern Ireland under the FCA regulations. As it stands, Northern Ireland remains the only part of the United Kingdom where claims management companies are not regulated by the FCA, due to the fact that the Northern Ireland Assembly was not sitting when the legislation was introduced in England, Scotland and Wales. With no room to legislate under the current timetable and an Assembly election coming in May—who knows what happens after May—I believe that the Bill provides the perfect vehicle for bringing forward the solution to what is a technicality on the support of claims management companies and car insurance users in Northern Ireland.

Motorists across Northern Ireland continue to face disproportionately high premiums, placing severe financial pressure on our households and particularly on young drivers. Unregulated claims management companies actively pursue customers after collisions and can take anywhere between 15% and 30% of compensation payouts, which significantly inflates overall claims expenses. Those excessive costs then act as a major driver pushing up the cost of car cover for our drivers.

[Claire Hanna (Belfast South and Mid Down) (SDLP)]

I know that the hon. Member has been working extensively on this matter. He rightly highlights Northern Ireland’s higher premiums; there are also fewer providers, as well as the matter of the unregulated claims management companies. He will know that public transport and cycle infrastructure is failing as well, driving more people into their cars. Does he agree that it is a symptom of Stormont’s failure that another collapse meant that this gap was not plugged, and does he share my concern about the sluggish response of Stormont on providing data and agreeing to co-operate on this matter, and the belief of many drivers that nobody is really at the wheel?

[Robin Swann]

The hon. Lady is correct in some of her assertions on this matter, because correcting this legislative anomaly has not been on the Executive’s agenda. I do not think it will be on their agenda even after the election coming in May.

This vehicle—this piece of legislation—does provide the solution for those who need affordable car insurance in Northern Ireland more so than in other parts of the United Kingdom. Extending the FCA’s regulatory remit to Northern Ireland is a vital, practical step to properly govern those firms. It will prevent exploitative practices and bring much-needed fairness to our local insurance market.

While various factors contribute to higher insurance costs in Northern Ireland, closing that regulatory gap, which the Bill will be able to do, will actually make a tangible difference. As the Economic Secretary will see, there is support for such a measure across the Northern Ireland parties. It has also been brought in the other House, too. I hope she will listen, and meet me to explore this anomaly and bring about the solution.