Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have held with representatives of the co-operative and mutual sector on increasing safeguards for financial mutuals against demutualisation; and if he will make a statement.
The Government is a strong supporter of the mutuals sector. Mutuals offer a different way of running a business, with their clear focus on their members needs and serving their local communities.
The Government routinely considers the effectiveness of legislation, including that for financial mutuals, and if any amendments are necessary. The Government is open to discussions about legislative reforms to support mutuals and other proposals to develop the sector. Treasury officials recently met with the Association of Financial Mutuals, which has put together a working group dedicated to exploring the impact of legislation and regulation on mutuals and friendly societies.