Question to the HM Treasury:

To ask Her Majesty's Government whether they have any plans to change Government funding to credit unions from grant funding to repayable long-term investment capital.

The Government recognises the importance of long-term investment capital for all businesses, including credit unions, in helping them to maximise their potential.

The Government therefore supports any measures that help credit unions attract more long-term investment, helping them to boost their capital base and subsequently issue more loans.

As was made clear in the response to the Government’s Call for Evidence on the future of credit unions in 2014, the Government does not intend to provide revenue support to credit unions. This approach has been tried in the past and risks offering support for unsustainable business models which will then struggle to survive, once the support is ended. The Government will only consider grant funding in relation to specific outcomes.

The Government is supportive of increasing the level of long-term investment capital into credit unions and welcomes the role played by some private sector companies in providing this.