Lending to small businesses and low-income areas must expand, say Labour backbenchers
Senior Labour backbenchers are urging the government to introduce legislation forcing UK banks to expand affordable lending to small businesses and low-income neighbourhoods,The former minister Gareth Thomas has tabled a 10-minute rule bill – a type of private member’s bill – echoing the US Community Reinvestment Act (CRA),Thomas said: “Given the cost of living crisis, we need to unlock far better access to cheap loans for the millions of people on low and middle incomes to help them through the financial emergencies that everyone faces at some point, while also making it easier for talented entrepreneurs to find the affordable finance they need to get their businesses up and running,”Co-sponsors of the legislation include the Labour select committee chairs Meg Hillier, Liam Byrne and Sarah Owen, and the former shadow chancellors Anneliese Dodds and John McDonnell,The Treasury published its own financial exclusion strategy last year, including a commitment to supporting the expansion of credit unions.
However, campaigners complained that it placed few specific duties on the financial sector, which the chancellor, Rachel Reeves, has praised as the “crown jewel in our economy”.Passed in the 1970s, the CRA obliges US banks to report to regulators on their record in lending to poorer communities.They are then rated accordingly, and explain what they will do to improve.Thomas’s bill, a longstanding campaigning aim of the Co-operative party, of which 41 Labour MPs are members, would establish similar reporting requirements for the UK.Banks would have to “measure and disclose their performance in reducing financial exclusion, including exclusion from affordable credit, and in improving access to finance for small and medium-sized businesses”, and regulators would “establish a system for rating banks according to that performance”.
The legislation would also oblige the banks to back credit unions and community development finance institutions (CDFIs) that specialise in small-scale, face-to-face banking in underserved communities.In the US, many banks fulfil their requirements under the CRA by collaborating with CDFIs.Hillier, the chair of the Treasury select committee, said: “I’m pleased my colleague Gareth is drawing attention to this issue.All too often, improving financial inclusion is treated as an abstract box-ticking exercise rather than a core responsibility of a modern, progressive society.“My committee has launched an inquiry into the Treasury’s proposals to improve financial inclusion.
We will be looking at whether the government has the plan and resources to genuinely tackle the real barriers people face.If this is not done properly, we all lose out.”Michelle Ovens, the founder of campaign group Small Business Britain, said: “Many small businesses and individuals continue to face barriers to accessing fair and affordable banking.This bill would be an important step towards tackling financial exclusion by increasing transparency and accountability across the banking sector.”The bill has little chance of proceeding, but many Labour backbenchers are keen to float alternative economic approaches, given widespread dissatisfaction with the party leadership’s approach.
Thomas was a junior minister in the Department for Business and Trade until the September reshuffle caused by Angela Rayner’s resignation.Reeves made the latest of a string of policy retreats last week, with the government promising additional support for pubs facing sharp increases in their business rates bill.It was the second U-turn in a matter of weeks, following the decision to significantly raise the threshold at which inheritance tax will be paid on farmland, after a year-long backlash.A Treasury source stressed that existing laws and regulations, including the consumer duty, overseen by the City watchdog the Financial Conduct Authority, already place responsibilities on banks in respect of financial inclusion, and suggested Thomas’s bill risked duplicating these.
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The curtain came down on the Ashes in Sydney with England again being outplayed in the basics of the game. But it is one thing to have a weak team, and another to have a talented one that just looks muddled.I was very optimistic going into the series because England had a quality group of players, many of them in their 20s – in my opinion their peak years – who had played a lot of international cricket together, come through a tough series against India, and appeared to have matured their approach, adding nuance and adaptability, evolving from their old one-size-fits-all swagger. Well, high expectations can be dangerous because if things don’t work out the disappointment is all the more profound.So I look at the wreckage of this series and all those high hopes and ask myself, did this management group – Rob Key, Brendon McCullum and Ben Stokes – give the England squad the best chance of success? They all seem to be bullish that they can carry on and of the three it is hard to argue that Stokes should not: he’s the obvious leader in the group and there are not many other candidates
Jess Hull steers Australia to relay gold at world cross-country championships in US
The Olympic medalist Jess Hull has steered a star-studded Australian quartet to a mighty relay win at the world athletics cross-country championships in Florida.Ollie Hoare, Linden Hall, Jack Anstey and Hull took charge to claim gold in the 4x2000m mixed relay in Tallahassee on Saturday.It Australia’s fifth medal in the 46-edition history of the championships.The team clocked a time of 22min 23sec to win by three seconds ahead of France, followed by Ethiopia (22min 34sec), Kenya (22min 42sec) and the US (22min 43sec) among 15 teams.Hoare put the Australians in contention in the opening leg before Hall opened a lead of six seconds then Anstey consolidated and Hull commanded the anchor leg
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If there is one thing Australians pride themselves on, it’s playing sport in the elements. From long days of cricket at the height of summer, the sun beating down harsh and unforgiving, to mud-soaked footy in the dead of winter. It’s a test of character, and Australians wear it like a badge of honour.So perhaps it is a surprise that Australia has yet to embrace ice hockey; tucked away in rinks so cold you need a puffer jacket just to sit and watch, even during summer. Combine that with its speed and brutal physicality, and it seems to tick every box
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A statement victory for Coco Gauff over her great rival Iga Świątek proved to be insufficient to the American’s hopes of leading her team into the final of the United Cup. Poland showed their depth in an excellent team performance to close out a 2-1 win over the United States at the Ken Rosewall Arena in Sydney.Poland, who finished runners-up to the US last year, exacted their revenge courtesy of the doubles specialists Jan Zielinski and Katarzyna Kawa, who maintained their unbeaten run in the competition by defeating Christian Harrison and Gauff 7-6 (5), 7-6 (3) in the decisive third rubber. Poland face Switzerland in the final on Sunday after the Swiss defeated Belgium 2-1.The tie opened with another victory for Hubert Hurkacz, who continued his impressive comeback from injury by defeating the world No 9, Taylor Fritz, 7-6 (1), 7-6 (2)
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