Lending to small businesses and low-income areas must expand, say Labour backbenchers

"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."

"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."

Gareth Thomas has tabled a 10-minute rule bill to require UK banks to expand affordable lending and reporting, modeled on the US Community Reinvestment Act. The bill aims to unlock cheap loans for low- and middle-income households facing financial emergencies and to help entrepreneurs access affordable start-up finance. Co-sponsors include Meg Hillier, Liam Byrne, Sarah Owen, Anneliese Dodds and John McDonnell. The Treasury published a financial exclusion strategy supporting credit unions but campaigners say it imposes few duties on banks. The proposed legislation would make banks measure and disclose performance on financial inclusion, fund credit unions and CDFIs, and face regulator ratings.

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