Budget 2020

The Budget had some big news for Credit Unions. The Chancellor announced that the Government was bringing forward reforms to the Credit Union Act to allow Credit Unions to offer members a wider range of products and services. The limitations on Credit Union products and services is a major barrier to growth and new legislation is sorely needed.

The Chancellor also announced that Capital Credit Union and Police Credit Union were among the organisations  receiving funding through the Affordable Credit Challenge Fund.

There were a number of measures to help deal with the coronavirus. These include statutory sick pay for those advised to self-isolate even if they have not displayed symptoms. In other changes, the employers NIC allowance will increase from £3,000 to £4,000. 

The Budget was announced hours after the Bank of England cut interest rates to 0.25%. The move designed to help the economy get through the coronavirus will further reduce income for many Credit Unions.

For more details please see https://www.gov.uk/government/publications/budget-2020-documents/budget-2020#budget-report