Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has had discussions with the Prudential Regulation Authority on the potential merits of 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.

HM Treasury is delivering on measures announced by the Chancellor in last year’s Mansion House speech, including: concluding a call for evidence on potential reforms to credit union common bonds, supporting the industry-led Mutual and Co-operative Sector Business Council, and commissioning the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to publish a report on the mutuals landscape by the end of 2025.

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