Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the report entitled Coronavirus Survey Report, published by the APPG on Challenger Banks and Building Societies, if he will make an assessment of the potential merits of the recommendations in that report; and if he will make a statement.

The Government recognises the crucial role of challenger banks and building societies in providing customers with more choice on the high street and is committed to maintaining competition in financial services.

HM Treasury officials have consistently engaged with regulators and representatives from the building society and challenger bank sectors on issues related to the COVID-19 pandemic. I have regularly engaged with representatives from the building society sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period.

The Government recognises that the COVID-19 crisis has been difficult for many organisations, including challenger banks and building societies.

That is why in April 2020, I wrote to thank frontline staff for their efforts to continue to provide essential services to their members.

We have considered the Coronavirus Survey Report produced by the APPG on Challenger Banks and Building Societies and thank the APPG for taking the time to produce the report. The Government remains committed to ensuring that challenger institutions have an appropriate environment to grow and offer more robust competition to the established players. The government will continue working with the regulators to ensure the UK has a highly competitive banking sector, working in the interests of all consumers and businesses right across the country. We will continue to work closely with challenger institutions and building societies as we consider the next steps in our economic recovery