Chancellor Pledges to Manifesto Commitment in Mansions House Speech

Friday 15 November 2024

On Thursday 14 November 2024, the Chancellor of Exchequer, Rachel Reeves MP delivered her first ‘Mansion House Speech’ to the financial and professional services sectors.

Alongside pledges to reduce regulation of the financial services sector, boost the use of Fintech and invest in business, Reeves said in her speech: “We are launching a call for evidence on the credit union common bond and asking regulators to report on the mutuals landscape.”

“ABCUL and the British sector have strong ambitions to grow beyond its current capacity and this call for evidence will be transformational to the movement across the country,” says ABCUL CEO, Robert Kelly.

The Chancellor also announced the creation of a new Mutuals and Co-operative Business Council will be established. The move is part of the government’s manifesto commitment to doubling the size of the co-op and mutuals sector, recognising its “invaluable role … in driving inclusive growth across the UK”.

“ABCUL is delighted with the Chancellors proposals, which marks a pivotal moment in strengthening the cooperative and mutual sector across the country,” Robert Kelly added. “Credit unions are founded on the ethos of people helping people and reform of the credit union common bond will provide a great opportunity to enhance the role of our sector in so many different ways.”

“The new Mutuals and Co-operative Council will also be instrumental implementing a strategy to further grow the vital services our sector provides – building financial resilience and investing in our communities across the country. “

Speaking in the City of London, the Chancellor of the Exchequer Rachel Reeves said: “Before we came into government, I was clear that the financial services sector must play a central part in our economic vision and our plan for economic growth.”

“The changes I have set out today will drive growth and competitiveness through investment and through reform,” the Chancellor added.  “A long-term strategy to harness the strengths of the financial services sector: making the UK a global leader in sustainable finance, developing the right approach to redress to reduce uncertainty, reinvigorating our capital markets by unlocking private investment through our pension funds, and reforming our approach to regulation to make it more dynamic and more competitive.

“Taken together, these measures represent the most pro-growth financial services package since the financial crisis.”

Robert Kelly added: “We believe the sector can play a key role in supporting communities to be financially resilient and continue to build a secure future for those who need it most.”

The full speech from the Chancellor is available here.