I congratulate the hon. Member for Sunderland Central (Julie Elliott) on presenting the Bill and bringing it this far. Having presented a private Member’s Bill myself, I know all about the joy, and the ups and downs, of the process.
Building societies are financial institutions with the principal purpose of providing residential mortgages, and are funded substantially by their members. I have seen at first hand how their membership system brings people together, and gives many a shared sense of interest and purpose. Darlington—this will come as no surprise—is home to Darlington Building Society, which has been serving the people of Darlington and the surrounding area since 1856. Its commitment to our
community is second to none; indeed, only last night at the Tees Business Awards event it walked away with the Community Champion award, which recognises its contribution to our community. While many high streets are seeing the loss of financial institutions, just a few months ago the Minister himself opened a new branch of Darlington Building Society in High Row.
Darlington is also the birthplace of the railways—bear with me here—and some years ago Darlington Building Society commissioned a children’s book by Peter Barron, the former editor of The Northern Echo, to tell the story of Darly the engine. As we approach the 200th anniversary of the railways—a very big year for us—the building society, in collaboration with the west end composer Stuart Brayson and Darlington Operatic Society, is turning the story of Darly into a musical, which will premier in September next year. I am proud to represent a town with such a strong track record of supporting our community.
The Bill is about putting building societies such as Darlington Building Society on a more level playing field with banks, in relation to their capital raising and corporate governance requirements, so that they can compete more effectively in the financial services sector and better support their members. It will help to deliver key asks from the sector itself. I welcome the provisions in the Bill, which largely mirror proposals that the Government consulted on during 2022, and I welcome that both the Government and the building society sector are supporting it. Indeed, Andrew Craddock, chief executive officer of Darlington Building Society, has also voiced his support stating:
“Darlington Building Society supports the proposed reforms to the Building Societies Act. The modernisation will cut archaic red tape by removing outdated corporate governance requirements, which building societies face but banks don’t.”
As a vital part of our financial framework, and with a deep-rooted interest in communities in Darlington, I believe the Bill will help building societies to survive and thrive. It is right that we do all we can to ensure that businesses flourish, so the cutting of red tape is welcome, as is the removing of outdated, bureaucratic governance systems that are not faced by big banks.
To conclude, I welcome the Bill as a way of ensuring that building societies are embraced and enabled to do business with fewer hurdles and red tape. It sorts out certain questions about funding, and it levels the playing field. I am pleased to support the Bill, and trust that the House will give it its full support.
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