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Building Societies Act 1986 (Amendment) Bill

19 April 2024

Proposing MP
Julie Elliott Lab
Sunderland Central
Type
Bill Debate

At a Glance

Issue Summary

Julie Elliott proposes an amendment to the Building Societies Act 1986 (Amendment) Bill to change the procedure for statutory instruments under new subsection (9B) from negative to affirmative. The Building Societies Act 1986 (Amendment) Bill aims to amend regulations to provide building societies more flexibility in funding sources without changing their ownership model. The statement discusses the Building Societies Act 1986 (Amendment) Bill which aims to level the playing field for building societies in terms of capital raising and corporate governance requirements, enabling them to compete more effectively with banks. The statement supports the Building Societies Act 1986 (Amendment) Bill, which aims to ensure building societies can compete with retail banks on an equal footing. Julie Elliott is presenting a summary of the Building Societies Act 1986 (Amendment) Bill, highlighting its purpose and thanking those who contributed to its progression.

Action Requested

The amendment requests that any statutory instrument containing regulations under the proposed new subsection (9B) of section 7 must be approved by a resolution in both Houses of Parliament before it can be made. This ensures closer scrutiny and transparency in potential changes via secondary legislation.

Key Facts

  • Amendment 2 changes the procedure for statutory instruments to an affirmative process.
  • The amendment aims to improve scrutiny of potential changes under the Bill.
  • Christopher Chope supports the amendment, citing examples where negative procedures did not allow proper parliamentary scrutiny.
  • The Bill disregards certain funds from the 50% wholesale funding limit.
  • Building societies in the north-east and Cumbria have lent £3.4 billion to first-time buyers since 2020.
  • Every £10 million of lending could support an additional 20,000 mortgages.
  • Darlington Building Society received the Community Champion award at the Tees Business Awards.
  • A musical based on 'Darly the engine' will premier in September next year.
  • The Government consulted on amendments to the Building Societies Act 1986 during 2022.
  • Nationwide Building Society serves around 25 million people and provides community services like online banking lessons and fraud advice.
  • Building societies are responsible for a third of first-time buyer mortgage completions according to the Building Societies Association.
  • The Building Societies Act 1986 (Amendment) Bill is supported by MPs across parties.
  • Nationwide Building Society was praised for its community outreach and commitment to mental health initiatives.
  • Building societies play a crucial role in providing affordable finance, particularly for first-time buyers.
  • The Bill has been supported by Members from across the House.
  • Treasury officials and Clerks provided invaluable advice and support throughout the process.
  • The Building Societies Association and sister party Co-operative Party also contributed to the bill's progression.
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