Key announcements for credit unions - Budget 2017
24 Nov 17
The big Budget announcement for credit unions was the increase in number of potential members that credit unions serving geographical areas can have from 2 to 3 million.
Matt Bland, Head of Policy and Compliance at ABCUL, said the change was part of a range of measures ABCUL had asked the government to consider following their commitment to review credit union legislation made in 2014: “The announcement in the Budget of the Government’s is part of a range of measures we’ve asked the Government to consider following their commitment to review credit union legislation in the 2014 Call for Evidence process.
“It will enable credit unions in larger urban conurbations to extend their common bonds to cover more of a heavily-populated area and may facilitate helpful consolidation of credit unions where appropriate. Over time it will also enable and facilitate the growth of the largest credit unions where they would otherwise have their expansion curtailed by the two million limit.
“There are a number of other areas – including the powers credit unions have to provide new and innovative services – which we believe warrant further legislative review and reform with great potential to unlock latent growth in the credit union sector and to allow it to play a broader and more effective role in the financial life of the UK. We will continue to work with HM Treasury to make the case for these reforms and are encouraged that they are open to considering all feasible legislative reforms which are likely to have a significant positive impact on the growth potential of the sector.”