Ethos Public Relations Manchester

"Financial Meltdown - who can you trust?" - The Labour Party Conference

by Ethos public relations

Sarah McCarthy-Fry MP, Exchequer Secretary to the Treasury, addressed a fringe meeting at the Labour Party Conference in Brighton, which examined the Government's attitude towards mutuals following the recession.

At the meeting, organised by Mutuo, the Association of British Credit Unions (ABCUL); the Building Societies Association; the Association of Mutual Insurers; the Association of Friendly Societies; the Co-operative Financial Services and Which?, addressed the fact that the mutual sector, whilst not immune from the downturn, has proved its durability in the economic downturn.

As the UK begins to emerge from recession, and reputations of many great businesses and their leaders have been damaged, the mutual sector has been relatively unscathed, and its long-termism and clear business purpose has insulated the sector from the worst of the economic storm.

Mark Lyonette, Chief Executive of ABCUL, explained how credit unions, as community-owned and controlled organisations, offering local people a well-trusted financial solution, are playing a vital role in the economic downturn.

"Credit union services are in demand more than ever, both from people looking for affordable places to borrow and from people looking for a safe home for their money," he said.

"Now that credit unions can offer a current account, many more people are leaving banks behind and having all of their wages or benefits paid into their credit union.

"Large numbers of credit unions have reported big increases in deposits - sometimes with members crossing the road clutching four figure sums they've just withdrawn from their bank.

"People are valuing local, mutual organisations that haven't been embroiled in the international economic crisis."

Posted at 29^th September 2009