Council Moves To Invest ‘To Improve Lives Of Vulnerable People in The Community’

Published on: 26 Sep, 2015
Updated on: 29 Sep, 2015

Plans for further investment by Guildford Borough Council in local credit union SurreySave could get the go-ahead on Tuesday next week (September 29) when they are considered by its Executive.

The leader of the council, Cllr Stephen Mansbridge, said: “One of our key priorities is to work with others to improve the lives of vulnerable people in the community.

“We co-founded SurreySave with neighbouring councils and partners, and have continued to support it with funding while it grows and becomes self-sufficient. Further investment in the credit union will allow it to expand and in doing so help more vulnerable groups.”

Launched in 2012, SurreySave provides locally based, locally funded ethical financial services. It is an accessible alternative source of finance for people who are unable to access mainstream banking services.

The council says the credit union is growing rapidly – 20% of its lending has been within the borough and applications from Guildford residents form the second largest area of lending activity. The credit union is expanding further and has invited the council to invest £100,000 in two stages, with a return in line with market interest rates.

Cllr Mansbridge added: “Our borough, despite being on average relatively affluent, has areas of significant financial exclusion where residents, often tenants in social or private rented homes, are reliant on doorstep lending or payday loans. We are keen to support measures to improve financial inclusion in the community with initiatives like this to help the most vulnerable residents.”

The council reports that SurreySave currently has 1,000 members saving £1.4 million and borrowing around £889,000 in loans.

It is a mutual co-operative bank, owned and controlled by its members (its customers).

It aims to provide an alternative to payday and other high interest loans for those who may have been denied credit or are financially excluded by high street banks. It offers simple services with no hidden charges or penalties, relying on larger loans to subsidise the cost of smaller loans.

Credit unions are regulated by the Financial Conduct Authority.

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