'People's Bank' must not distort competition

The Government this week set out its plans for the expanded role of the Post Office, including the launch of a children’s savings account, a partnership with credit unions to offer affordable credit and a new first-time buyer mortgage, with a 90% loan-to-value ratio. The Post Office also announced it intends to increase its lending substantially, aiming to double the value of its mortgage book in the financial year 2010/11.

The Post Office will receive new Government funding of £180m, beyond the £1.7bn that is already invested.  The Government will also consult on a new community levy to be funded by retail banks to support the link between credit unions and the Post Office.

In our response to Department for Business, Innovation and Skills' (BIS) initial consultation, the BSA urged that any competition from the Post Office must be fair, and it should concentrate on products and services in areas in which the Post Office is better qualified than its private sector counterparts, such as the Post Office Card Account and the Saving Gateway.

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'Mutualism' to offer next step for public services

The Government has today announced that mutualism will be at the forefront of their vision for Britain’s future.

In the report, ‘Mutual Benefit: giving people control of public services’, the Government sets out how it will accelerate opportunities for mutuals to develop and flourish across three key areas of public services.
 
Commenting on the plans, Tessa Jowell MP, Minister for the Cabinet Office, said:

“This is the moment for mutualism.  In the wake of the global financial crisis and the parliamentary expenses scandal, it is clear that people are no longer prepared to trust large organisations over which they have no control.  This is particularly important as we are talking about services that are of such great significance in the personal lives of the people that they serve.

“In the future, mutuals will play an increasingly important role in delivering public services.  Mutual organisations are controlled by their members; they are exceptionally well-suited to strengthening relationships between staff, users and the wider community – and these stronger relationships will lead to better outcomes for all.”

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BSA Annual Report 2009 published

The Annual Report 2009 provides a reflection on the environment that building societies are currently operating in and goes on to cover policy issues, external relations and other issues. A directory provides details of the Council, Secretariat, members and associates of the Association.

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Updated Consumer Leaflet - Individual Savings Accounts and You

The Association has updated its 'Individual Savings Accounts and You' leaflet, which explains the main features of individual savings accounts in an easy to read question and answer format, to cover the subscription limits that will apply from 6 April 2010.

View the BSA leaflet