Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support she is offering for the building societies, in the context of the government's ambition to double the size of the mutuals sector.

The government is committed to supporting the growth of building societies in line with the manifesto commitment to double the size of the mutual and co-operative sector. HM Treasury has already announced measures to support the sector and is currently progressing these.

For building societies specifically, HM Treasury has committed to progressing further amendments to the Building Societies Act 1986. This follows two statutory instruments being laid in October 2024, which raise the turnover limit for the definition of a small business for the purpose of wholesale funding limit exclusions, remove outdated director retirement requirements, and simplify how balance sheets are signed. These will create a more supportive legislative environment for building societies.

To support all financial mutuals, HM Treasury has also asked the Prudential Regulation Authority and Financial Conduct Authority to produce a report on the current landscape of the sector. This is expected to be published before the end of 2025. The government also welcomed the establishment of the Mutual and Co-operative Sector Business Council to consider mutual and co-operative solutions. The government also published the Financial Services Growth and Competitiveness Strategy, which will support all organisations in the financial services sector and encourages the sector to continue to work in partnership with government to deliver growth.