Bank Resolution (Recapitalisation) Bill [Lords]

Gareth Snell Excerpts

Report stage
Thursday 24th April 2025 Commons Chamber

It is worth remembering, however, that the issues we are considering relate to banks and building societies once they have failed. In such circumstances, the alternative to demutualisation as part of a resolution may be insolvency, which may have far more adverse consequences for members of the mutual, as well as for the wider mutual and banking sector.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Will the Minister give way?

[Emma Reynolds]

I am afraid I am being urged to wrap up. I remind Members that the Bill is fundamentally about protecting the taxpayer—

[Gareth Snell]

We have Third Reading—it’s fine.

[Emma Reynolds]

We have not come to that yet; my hon. Friend can intervene on Third Reading. [Laughter.]

Taking what I was saying into account, although the Government appreciate the point raised by the sector and by the shadow Minister, we do not believe it is necessary to hardwire in legislation a requirement to update the code of practice on this matter. I understand, however, that the mutual sector feels strongly about this issue, and my officials and I will continue to engage with the sector on it. I commend to the House our position on the new clauses and amendments, which is to resist them.