Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what progress she has made on developing a central finance facility for credit unions.

The Government has made clear its strong support for the credit union sector, recognising the value that credit unions bring to their members in local communities across the country in providing savings products and affordable credit.

On 14 November, the Chancellor announced new measures to support the growth of the credit union and mutuals sector. Following this Mansion House speech, HM Treasury has concluded a call for evidence on potential reforms to credit union common bonds, supported the industry-led Mutual and Co-operative Sector Business Council, and commissioned the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to publish a report on the mutuals landscape by the end of 2025.

There are currently no plans to develop a central finance facility for credit unions. The Government continues to engage with the sector and will keep all issues, like central finance functions, under review.