Issue - meetings

    Report by the Executive Director Alistair Cunningham.

Cllr Philip Whitehead presented a report recommending Wiltshire Council support the setting up of a regional bank for the wider Avon region, alongside other local authorities in the region.

Cllr Whitehead explained that the Community Savings Bank Association was established in 2015 to apply international best practice to creating a network of 18 co-operative regional banks in the UK, Avon Mutual being one of the regional banks for the South West area.  Funding of £2m would be required to support the establishment of the bank prior to it applying for a banking licence from the Financial Conduct Authority. Wiltshire Council’s contribution would amount to £50,000.

The Cabinet noted that the Mutual Bank would help to support residents, develop local economies and promoting economic development, supporting small and medium sized enterprises business growth and improving financial inclusion. 

In response to a question from Cllr Thorn, Chair of the Financial Planning Task Group, about the proposal for a grant to the mutual bank in preference to an investment, Cllr Whitehead explained that the Council was limited to providing grants at this stage in the process as the Bank was not at the stage of applying for a banking licence. Once the licence was granted the Council would be able to review additional investments.

In response to additional questions from (i) Cllr Church about the funds currently raised by the Bank; (ii) Cllr Mayes about previously unsuccessful attempts to establish similar banks in the UK; (iii) Cllr Clewer about how the Bank would market its operation to those who struggle to acquire credit; (iv) Cllr Thomson about the range of funds managed by the Local Authority for residents, under the Mental Health Act, that could be transferred to the Bank; Cllr Whitehead explained that (i) the Bank had received 95% of its estimated requirement of £2m; (ii) was confident that the Banks would succeed on this occasion as the Banks infrastructure, both in IT and operationally, has received appropriate investment from the Community Savings Bank Association, with the potential for banks to be located in campus hubs, and remain as retail banks that would be stabilised in the market place;

The Leader requested that future discussions with the Bank should include the services to be delivered to Wiltshire residents and businesses, including pop-up banks in leisure centres and community hubs and offering advice to those struggling with financial issues. 

Resolved:    To approve a grant of £0.050m to support the funding of the initial process to accreditation by the Financial Conduct Authority.

Reason for Decision:

1.     In general, the operation of Avon Mutual Bank in the County would align with strategic priorities and support the local authority’s existing policy objectives with regard to social mobility, supporting vulnerable people and supporting the growth of businesses across the County. The operation of a mutually owned bank would be a means to reduce the problems of financial exclusion for households and extend the availability of loans and finance to small and micro-companies which  ...  view the full minutes text for item 91