Building Societies

Treasury written question – answered on 4th March 2014.

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Photo of Cathy Jamieson Cathy Jamieson Shadow Minister (Treasury)

To ask the Chancellor of the Exchequer what consideration he has given to creating opportunities for the establishment of new building societies.

Photo of Sajid Javid Sajid Javid The Financial Secretary to the Treasury

There is no legal barrier to the establishment of new building societies, who are free to make an application to the regulatory authorities.

The nature of building societies as member-owned financial institutions means that they require a substantial amount of capital to be formed, but those who provide that capital cannot be given ownership or voting rights. This may have contributed to the fact that there have not been any new building societies established since 1981.

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