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West Lothian Council Agrees Support for Credit Unions

Credit unions across West Lothian are being backed by West Lothian Council as another high street bank shuts its doors.

Friday 31 January 2025

SNP group depute leader and Bathgate councillor Pauline Stafford warned that many families struggled during the cost-of-living crisis as traditional banks desert high streets, with many facing mounting debts and becoming prey to “unscrupulous lending practices”.

The joint motion between the SNP and Labour, signed by council leader Lawrence Fitzpatrick, said: “Credit unions have the potential to play a major strategic role in the fight against poverty and financial exclusion.”

As of December 2023, there were only 404 bank branches left in Scotland, with 636 banks and building societies closing since 2015 – more than 60% in just nine years.

The composite motion agreed by council said: “As a result of the withdrawal of many of West Lothian’s high street bank branches there are many people who will struggle further to manage their finances.

“Without credible, structured and accountable alternatives they could fall victim to unscrupulous lending practices.

The council already offers financial help and advice through the Advice Shops, and staff can contribute through payroll deductions to a credit union.

The motion suggested giving wider support to existing credit unions through council information sites and encouraging the establishment of credit unions – potentially including establishing a credit union development officer – as Scottish Borders Council has.

Councillor Stafford added: “I’m sure most of us know and value the work that’s done in our credit unions currently to support our communities.

“I think there’s still more we can and should do to help raise the profile of credit unions further and explore ways that we can further embed them in a greater range of council services.

“Their services have become even more important in the last decade as endemic and worsening inequality continues to blight our society and as mainstream banks withdraw from communities as has just occurred in my own ward.”

Commenting on this support in the area, ABCUL CEO, Robert Kelly said: “We sincerely thank the West Lothian Council for its pledged support to the credit union sector. This commitment has been instrumental in helping credit unions continue its vital work of promoting financial wellbeing and inclusion across communties. Credit unions in Scotland are thriving, with over 430,000 members—representing 7% of the population—who trust their local credit union to put their needs first. At the heart of everything we do is a deep commitment to serving our members and ensuring they have access to ethical, affordable financial services. With the continued support of local Governments, we look forward to further strengthening our impact in communities across the country.”

Source – Insider

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