Provision of credit union services in Lambeth
Decision Maker: Housing, Regeneration and Environment
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
This report outlines a request for a waiver to
the requirement for a competitive tendering process in relation to
the provision of credit union services to financially disadvantaged
residents in Lambeth through a new high street branch at Council
owned premises at 10 Acre Lane.
The Credit Crunch Taskforce identified local credit unions as a priority in order to support some of the borough’s most disadvantaged residents to gain access to financial services. Subsequently, a merger has been agreed whereby Southwark Credit Union (SCU) will absorb the functions of Lambeth Savings and Credit Union (LSCU) in order to create a financially stable entity to offer services in Lambeth. Cabinet agreed in February 2010 to support the new merged entity (“London Mutual Credit Union”) to establish a high street branch at Acre Lane.
The relationship between Lambeth Council, LSCU and SCU is unique in that no other bodies are working to deliver credit union services to Lambeth residents. SCU has a proven track record to deliver the project through experience in absorbing small credit unions and providing them with appropriate high street accommodation, with 3 successful branches in Camberwell, Peckham and Bermondsey. It is therefore proposed that London Mutual Credit Union (LMCU) be awarded a contract worth £120,000 to deliver credit union services – deemed to be Services of General Economic Interest (SGEI) – contingent on the refurbishment of the premises at 10 Acre Lane and service delivery targets as set out in a contract.
Publication date: 12/05/2010
Date of decision: 20/05/2010