Petition the Prime Minister to support building and mutual societies

Last week I decided to ask Downing Street to accept a petition calling on the Prime Minister to take steps to actively support mutual and building societies. Ironically on the day when the British banking system has been effectively nationalised, I have been told by Number 10 that my petition has been accepted.

You can sign it here: http://petitions.pm.gov.uk/Building-Soc/

The petition reads:

We the undersigned petition the Prime Minister to develop policy which supports Mutual Societies and Building Societies and puts people, not profit at the heart of finance.

A building society is a mutual organisation. This means that instead of having shareholders, it has members who collectively own the business and are also its customers. The main examples of this type of organisation in the UK are co-operative societies, mutual insurance companies and building societies.

Members have the right to vote for directors regardless of how much or how little money they have with the society.

Each building society invests its profit back into the society’s business. Unlike banks, mutuals do not pay dividends.

In other words – your money works for you, not the City.

This enables the building society to offer competitive rates of interest on both savings and mortgages. It sets the rates it pays savers at just less than the rate charged to borrowers.This margin gives the society a profit. Many analysists believe this offers customers a much better deal.

Given a crisis of confidence is at the heart of the current crisis, we are calling on the Prime Minister to actively support a trustworthy system of building and mutual societies which can support home owners and encourage a viable property market.

Please sign the petition if you agree with it and encourage your colleagues, friends and family to do so also.